The cryptocurrency market is witnessing a significant surge in Bitcoin buying demand, with market buy orders reaching a ratio of 1.17. This marks the highest level observed since January 2023, according to analysts from the CryptoQuant platform. The ratio indicates a pronounced advantage for buyers over sellers, reflecting robust one-day buying momentum in the current market cycle.
Experts at CryptoQuant explain that this indicator measures the volume of market purchases against sales in the open-ended futures market. A reading above 1 signifies aggressive demand, and the notable increase on December 2 illustrates the strongest one-day tilt toward buyers seen in the past two years.
This buying frenzy appears to be driven by several factors. Notably, a shift in Vanguard“s trading policy regarding Bitcoin ETFs may have played a role, as the investment firm has recently opened access to ETF trading for over 50 million clients. This development is expected to increase institutional participation in the market.
Additionally, analysts point to macroeconomic indicators that support the current market dynamics. Key stress indicators are trending lower, suggesting a transition from a stressed phase toward a recovery in liquidity. Historically, such transitions have often preceded prolonged periods of growth for Bitcoin.
CryptoQuant emphasizes that these developments indicate the current bull cycle is likely far from reaching its conclusion. The adoption of ETFs, renewed interest from institutional investors, and an early reversal in liquidity trends all suggest further market expansion rather than exhaustion.
Despite the positive signals, experts advise caution regarding macro-financial risks, particularly noting ongoing uncertainties in Japan”s economic situation. Previous analyses have indicated that the rising interest among retail investors and the reserves held by exchanges like Binance hint that the market may be approaching its bottom.
