Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>VanEck analysts predict a strong recovery for Bitcoin due to robust network activity and declining futures funding costs.</li> 
 <li>Bitcoin’s funding cost mirrors its recoveries in May and July, suggesting a similar risk appetite among investors.</li> 
</ul>  
<h2 id="vaneck-s-predictions-for-bitcoin">VanEck’s Predictions for Bitcoin</h2> 
<p>VanEck’s monthly report indicates that Bitcoin, the largest digital asset globally, has shown impressive resilience. Analysts Mathew Sigel and Nathan Frankovitz suggest that the strong network activity and a decrease in future funding costs could hint at a strong recovery for Bitcoin.</p> 
<p>The funding rates for Bitcoin, which are the fees paid by traders to hold perpetual futures contracts, have dropped to levels similar to those seen during the recoveries in May and July. This pattern suggests a comparable risk appetite among investors.</p> 
<h2 id="bitcoin-s-current-state">Bitcoin’s Current State</h2> 
<p>Despite the promising setup, Bitcoin saw a decline in August, reducing profitable addresses by about 9%. According to the report, 84% of Bitcoin users still had unrealized profits, while the remaining users experiencing losses were primarily short-term investors.</p> 
<p>The analysts noted that these recent drawdowns are standard retracements in Bitcoin bull markets. Additionally, sell-offs from Bitcoin miners have been decreasing, indicating a stabilization from miners.</p> 
<p>At the time the report was written, Bitcoin’s higher timeframe chart was bullish. It had moved above the short-term supply area at $63k and reclaimed the 200-day SMA (Simple Moving Average).</p>

VanEck Suggests Bitcoin Could Be Echoing Past Market Bounce Backs

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CoinEagle.com

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