- Bitcoin (BTC) has faced selling pressure recently, with its price declining by 1.45% in the last 24 hours, trading around$96,800.
- New investors have been a key driver of BTC’s upward momentum in 2025, but their buying activity has slowed.
- The Ratio of New and Old Bitcoin Supply indicates that new investors remain active, though at a reduced pace.
- U.S. investors, particularly those on Coinbase, have been significant contributors to BTC’s recent rally, but their activity has cooled.
- Despite the slowdown, the market sentiment remains bullish, with high trading volumes and a positive Funding Rate suggesting a potential price rebound.
- A negative Binance Funding Rate could act as a catalyst for BTC to rally above$100,000.
Bitcoin’s Recent Struggles: A Temporary Setback?
The past few days have been challenging for Bitcoin, as sellers have taken control of the market, pushing its price down by 1.45% in the last 24 hours. Currently trading at approximately$96,800, BTC has seen a slight dip in momentum, raising questions about whether this is a temporary correction or the start of a larger trend.
Interestingly, the decline comes despite a strong start to 2025, where new investors played a pivotal role in driving BTC’s price upward. This influx of fresh market participants created a bullish sentiment that has largely persisted, even as buying activity from this group has slowed. The Ratio of New and Old Bitcoin Supply, a key metric for gauging investor behavior, shows that while new investors are still active, their enthusiasm has waned slightly.
The Role of New Investors in BTC’s Momentum
Since the beginning of 2025, Bitcoin has benefited from a surge in new investors entering the market. This trend has been tracked using the Ratio of New and Old Bitcoin Supply, which compares the amount of BTC purchased within the last week to six months against those bought six to twelve months ago. When this ratio rises, it signals increased activity from new investors, often coinciding with price rallies.
Currently, the ratio remains in bullish territory, with the purple cloud on the chart staying above the dotted line. This suggests that while the pace of new investments has slowed, the market still holds potential for further upward movement. If this metric continues to stay elevated, BTC’s price could maintain its bullish trajectory, providing a foundation for future growth.
U.S. Investors and the Coinbase Premium Index
A significant portion of Bitcoin’s recent rally can be attributed to U.S. investors, particularly those trading on Coinbase. The Coinbase Premium Index, which measures the difference in BTC prices on Coinbase versus other exchanges, has been a reliable indicator of buying activity among this group.
Although the index remains in positive territory, it has dropped from 0.129 to 0.010, reflecting a slowdown in buying activity. This decline aligns with a slight reduction in the number of transactions over the past 24 hours, which fell to 21,140. Despite this, the trading volume remains substantial, with 606,570 BTC worth$59.1 billion changing hands.
The high trading volume, coupled with a minor price decline, suggests that the market is currently balanced between buyers and sellers. This equilibrium indicates that while selling pressure exists, the bullish sentiment has not been entirely eroded.
Funding Rates and the Potential for a Rebound
One of the most promising signs for Bitcoin’s near-term outlook is the positive Funding Rate across multiple exchanges. This metric, which measures the balance of long and short positions, has turned positive, signaling that long traders are paying to maintain their positions. Historically, a positive Funding Rate has often preceded significant price rallies, as it reflects growing confidence among market participants.
However, an interesting anomaly lies in Binance’s Funding Rate, which remains negative. According to historical trends, BTC often experiences a strong bounce back following a period of negative Funding Rates on Binance. If this pattern holds true, Bitcoin could be poised for a major rally, potentially pushing its price above the$100,000 mark.
Market Sentiment: Bullish Despite Challenges
Despite the recent dip in price and a slowdown in buying activity, the overall market sentiment for Bitcoin remains optimistic. The high trading volumes and positive Funding Rates suggest that investors are not abandoning the market but are instead adopting a more cautious approach.
The slight cooling of activity among U.S. investors and new market participants may be a temporary pause rather than a long-term trend. With key metrics like the Ratio of New and Old Bitcoin Supply and the Coinbase Premium Index still indicating bullish potential, the foundation for a price rebound remains intact.
Conclusion
Bitcoin’s recent struggles appear to be more of a temporary setback than a sign of a prolonged downturn. While selling pressure has pushed its price down slightly, the market’s underlying fundamentals remain strong. New investors, though less active than before, continue to support BTC’s bullish sentiment, and U.S. investors remain a key driving force despite a slowdown in activity.
The positive Funding Rate and the potential for a bounce back following Binance’s negative Funding Rate add to the optimism. If these factors align, Bitcoin could soon rally past the$100,000 mark, reaffirming its position as the dominant force in the cryptocurrency market. For now, investors should keep a close eye on key metrics and market trends, as the next major move could be just around the corner.
