On-Chain Data Signals Massive Rally In Bitcoin And Ethereum Price

    On-Chain Data Signals Massive Rally In Bitcoin And Ethereum Price

    The crypto market continued the bullish momentum after the U.S. Federal Reserve slowed the rate hike to 25 bps on Wednesday. Moreover, the Bank of England and the European Central Bank both announce a 50 bps rate hike today. Bitcoin price currently trades at $23,864, up over 3% in the last 24 hours. Meanwhile, Ethereum price soars over 6% in the last 24 hours, with the current price trading at $1,679.

    The positive sentiment among traders continues as they await the crucial week to end. The US Dollar Index (DXY) is currently recovering from below the 101 level, ahead of the rate hike decisions.

    Bitcoin Whale Activity Jumps After US FOMC

    According to Bitcoin Exchange Whale Ratio for All Exchanges (EMA 7) on-chain data, whale activity has increased in the last two weeks. The move came after bitcoin whale activity on crypto exchanges nearly reached a year low despite a recent BTC price rally in the last two weeks.

    Bitcoin price
    Bitcoin Exchange Whale Ratio – All Exchanges (EMA 7). Source: CryptoQuant

    Furthermore, Bitcoin’s Coin Days Destroyed (CDD) was higher before the U.S. FOMC meeting on January 31 and February 1. However, the CDD data shows transactions had not yet flowed into crypto exchanges. Thus, it indicates whales are holding their Bitcoin.

    Moreover, the Bitcoin Realized Price UTXO Age Bands metrics the estimated cost basis of the 3-6 month age cohort is around 20.4K. Thus, it will act as support in the case of the selling situation. Whereas, the cost base for the next cohort (6-12 months) is about $32,000.

    Bitcoin price
    Bitcoin Realized Price – UTXO Age Bands. Source: CryptoQuant

    Also Read: Bitcoin Price Holds $24K As Traders Watch These Three Key Events

    Ethereum Network Activity Rises

    Ethereum has recorded some positive signs due to increased network activity. Also, a higher network activity generally makes the Ethereum price to rally. Moreover, the overall number of transactions on the Ethereum network has recovered to levels not seen since June 2021.

    The contract calls have also reached new highs. However, Ethereum active addresses are yet to recover. Thus, the Ethereum price is overall bullish for an upside move.

    Also Read: Bitcoin Vs US Dollar: How Strong Is Macro Support For Crypto Rally

    The post On-Chain Data Signals Massive Rally In Bitcoin And Ethereum Price appeared first on CoinGape.

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