ARK Invest’s latest analysis reveals a potential cooling in Bitcoin’s bullish momentum as capital inflows weaken, contrasting with renewed conviction from long-term investors. The firm noted Bitcoin’s Market-Value-to-Realized-Value (MVRV) ratio signals slowing new buyer activity, indicating fading upward pressure.
Meanwhile, Bitcoin holders maintaining positions for extended periods have reached a 15-year peak, collectively controlling approximately 74% of total supply. This milestone demonstrates unprecedented conviction among the asset’s most committed investors despite shifting market dynamics.
Bitcoin’s market dominance concurrently surged to 65%, reaching heights unseen since late 2020 as alternative cryptocurrencies underperform. Analysts attribute this divergence to institutional preferences and altcoins’ diminished risk-adjusted returns relative to Bitcoin.
ARK suggests macroeconomic developments including subdued inflation metrics and potential Federal Reserve interest rate cuts could materially influence Bitcoin’s price trajectory. Market analysts anticipate increased volatility through the latter half of the year, advising investor caution amid shifting macroeconomic crosscurrents.