Bitcoin Jumps 7% to $82,910 Despite Bearish Metrics, BITCOIN Act Boosts Sentiment

Bitcoin's price surged by 7% within a 24-hour period, reaching $82,910 from a low of $79,356. This significant price increase occurred despite various metrics indicating bearish territory. The surge in Bitcoin's price can be attributed to several factors, including increased investor confidence and market sentiment. However, the underlying metrics that typically signal a bearish trend suggest that the market may still be facing challenges. These metrics could include indicators such as trading volume, market capitalization, and technical analysis patterns that often precede a price decline. Despite these bearish signals, the recent price surge indicates that there may be underlying bullish factors at play, such as institutional investment or regulatory developments that are driving the price upward. Investors and analysts will be closely monitoring these metrics to gauge the sustainability of the recent price increase and to assess the overall health of the Bitcoin market.

CryptoQuant, an onchain analytics platform, reported that all Bitcoin valuation metrics indicate a bearish trend. The Bitcoin Bull-Bear Market Cycle Indicator is at its most bearish level of this cycle, and the MVRV Ratio Z-score has crossed the 365-day moving average, indicating that the upward price trend has lost momentum. This suggests that the recent price surge may not be sustainable in the long term. However, the reintroduction of the BITCOIN Act, which proposes that the US government buy 1 million BTC over five years, has provided a boost to investor confidence and market sentiment. This regulatory development could be a significant factor driving the recent price increase.

Despite the recent price surge, some traders remain skeptical about the sustainability of the upward trend. Crypto analyst Bitcoin Rachy and crypto trader BitcoinHyper have both expressed doubts about the recent price increase, suggesting that it may be a "fake pump" designed to take advantage of unsuspecting investors. This skepticism highlights the need for investors to conduct their own research and to be cautious when making investment decisions. The recent price surge may be a result of short-term market dynamics, but the underlying bearish metrics suggest that the market may still be facing challenges in the long term.

CryptoQuant also reported that Bitcoin's demand fell by 103,000 BTC last week compared to the previous week, marking its fastest pace of contraction since July 2024. This decline in demand is due to uncertainty around inflation rates and imposed tariffs