Bitcoin appears set for a significant upward movement after a strong start to 2025. However, questions remain about the overall health of the market and whether the current upward momentum can be maintained over the coming weeks and months. Here, we’ll take an unbiased, data-driven look at the fundamental numbers supporting our current trend.
For a more in-depth look at this topic, watch a recent YouTube video here: Analysis based on Bitcoin data and a roundup of the chain
Miners recovery
Multiple PuellIt is a metric that compares miners’ daily revenues in US dollars to their annual average, and indicates that the strength of the underlying Bitcoin network remains strong. Historically, after a halving event, miners’ revenues have seen a significant decline due to the block reward being reduced by 50%. However, the Puell Index recently rose above the key value of 1, indicating a recovery and a possible bullish phase.
Past cycles show that crossing and retesting value 1 often precedes significant price spikes. This pattern is repeated, indicating strong market support from mining activity.
Great potential for upside
MVRV Z-scorea metric that analyzes Bitcoin’s market capitalization compared to its realized value, or the cumulative average price of all Bitcoins, indicates that current values are still well below historical peak areas, showing significant room for growth.
A A two-year rolling edition of the MVRV Z-Scorewhich is adapting to evolving market dynamics, also shows upside potential. Even by this revised measure, Bitcoin remains far from the peak levels of the previous cycle, leaving the door open for further price appreciation.
Related: We’re repeating the 2017 Bitcoin Bull Cycle
Sustained feelings
the Bitcoin Fear and Greed Index Currently at a healthy and sustainable level of greedy emotions, indicating greedy but sustainable emotions. Historical data from the 2020-2021 bull cycle shows that greed levels around 80-90 can persist for several months, supporting bullish momentum for an extended period. Only when values approach extreme levels (95+) does the market usually face significant corrections.
Network activity
the Active title sentiment indicator It reveals a slight decline in network activity, indicating that retail investors have not yet fully returned to the market. However, this could be a positive sign, indicating untapped demand in the retail sector that could fuel the next phase of the rally.
Shifts in risk appetite
Traditional market sentiment is showing signs of improvement. High yield credit Appetite is increasing as the macroeconomic environment shifts to a more risk-on outlook. Consider corporate bonds that offer higher interest rates due to their lower credit ratings compared to investment grade bonds. Historically, there has been a strong correlation between Bitcoin’s performance and periods of high global risk appetite, which often coincide with bullish phases in the Bitcoin price.
Related: What Bitcoin Price History Predicts for February 2025
conclusion
Bitcoin on-chain metrics, market sentiment, and macro perspective point to a continuation of the current bull market. While short-term fluctuations are always possible, the convergence of these indicators suggests that Bitcoin is well positioned to reach and possibly surpass its current all-time highs in the near future.
For a more detailed analysis of Bitcoin and to access advanced features such as live charts, custom trend alerts, and in-depth industry reports, see Bitcoin Pro Magazine.
Disclaimer:This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
