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Bitcoin Surges 10% as Investors Reassess Macro Cues

Coin WorldWednesday, Apr 16, 2025 2:08 am ET

1min read

Bitcoin has shown a notable rebound over the past week, recovering from a brief period of downside pressure earlier this month. The asset dropped below $80,000 amid market turmoil but has since regained its losses, now trading above $85,000. This recovery marks a nearly 10% surge over the last seven days, driven by investors reassessing macroeconomic cues and on-chain signals.

The market’s resilience is supported by several key metrics. According to a recent analysis by CryptoQuant analyst BorisVest, various on-chain indicators suggest that Bitcoin remains undervalued in the current cycle. The analysis highlights declining exchange reserves, a stablecoin supply ratio that indicates available liquidity for new purchases, and normalized funding rates that suggest reduced risk of overheated market conditions.

One significant observation is the ongoing reduction in exchange-held Bitcoin reserves, which have returned to levels not seen since 2018. The total number of BTC on exchanges stands at around 2.43 million, significantly down from the 3.4 million observed during the 2021 bull market peak. This reduction implies a shift toward long-term holding behavior among investors, limiting available supply for immediate sale and potentially contributing to upward price pressure.

Additionally, the Stablecoin Supply Ratio (SSR) currently stands at 14.3. The SSR is a metric used to gauge the purchasing power available in the market via stablecoins. A lower SSR indicates higher purchasing power and potential for further buying activity. Since the SSR has not reached the elevated levels seen during the last cycle’s peak, the data implies that capital remains on the sidelines and could be deployed as prices stabilize or rise.

Another significant factor is the normalization of funding rates. During Bitcoin’s recent all-time highs, funding rates spiked as long positions accumulated rapidly, suggesting an overheated market and increased short-term risk. However, since the correction, these rates have returned to neutral territory, now hovering between 0.00% and 0.01%. This return to balance is interpreted as a reset of market sentiment, reducing the likelihood of immediate downside caused by over-leveraged longs.

The report concludes that the combination of declining exchange reserves, a stable SSR, and subdued funding rates supports a constructive outlook for Bitcoin in the near term. While broader macroeconomic factors will continue to influence sentiment, current on-chain dynamics suggest that investor confidence remains intact. The focus now shifts to whether these conditions will translate into sustained upward momentum or if a period of consolidation will take hold before the next major move.

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