KEYTAKEAWAYS
- Traders believe BTC has limited short-term upside
- Stablecoin total market cap hits new all-time high
- Investors holding more than 1 BTC are buying
CONTENT
TRADERS BELIEVE BTC HAS LIMITED SHORT-TERM UPSIDE
On January 26, Nick Forster, the founder of the on-chain options protocol Derive, stated in an analyst report from January 25 that the Trump administration’s executive orders focused on evaluating digital asset reserves, rather than on Bitcoin’s strategic reserves.
This has suppressed short-term bullish expectations for Bitcoin. “The market believes that the short-term upside for this asset is limited, possibly due to the lack of specific BTC reserve announcements.”
Analysis:
From a bullish perspective on Bitcoin, although the Trump administration’s executive orders did not directly promote Bitcoin as a strategic reserve, it does not affect Bitcoin’s long-term prospects. Bitcoin, as “digital gold,” has been increasingly accepted by institutions and individuals, especially amid global economic uncertainty and inflationary pressures, leading to a sustained growth in demand.
While the lack of clear policy may lead to volatility in the short term, the mainstreaming of Bitcoin and its hedging properties continue to support its long-term upward potential.
STABLECOIN TOTAL MARKET CAP HITS NEW ALL-TIME HIGH
On January 26, DefiLlama data showed that the total market cap of stablecoins across the entire network surpassed $215 billion, reaching $215.66 billion, setting a new all-time high. In the past week, this figure grew by 2.97%. Among them, USDC’s market cap saw the most notable growth, increasing by 9.67% in the past week, currently at $52.119 billion.
Analysis:
The new all-time high in the total market cap of stablecoins reflects the strong ongoing demand for stable assets in the crypto market, particularly during times of high volatility. USDC, one of the primary stablecoins in the market, has seen significant growth, which may be closely tied to its widespread use on DeFi platforms and the recent rebound in the crypto market.
Investors are increasingly using USDC for trading and providing liquidity, further boosting its demand. The growth of the stablecoin market may indicate that investors are becoming more reliant on stable crypto assets.
INVESTORS HOLDING MORE THAN 1 BTC ARE BUYING
On January 26, CryptoQuant CEO Ki Young Ju posted on X (formerly Twitter), stating that data shows investors holding less than 1 BTC are selling, while those holding 1 BTC or more are actively buying.
Analysis:
This trend may reflect the emotional fluctuations of retail investors, who are more likely to be affected by short-term market volatility, leading them to sell. On the other hand, large investors might focus on Bitcoin’s long-term value and see buying opportunities at the current price range.
This shift suggests that the market is moving from short-term speculation to long-term holding, potentially indicating a steady upward trend in Bitcoin’s price over a certain period.
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