After dipping below $99k last week, BTC has made an aggressive comeback, touching at $106,200 this early morning as per CMC. Major key factors drove this drop-to-rally movement: Investors and a liquidity wave powered by stablecoin.
According to On-Chain data, Binance’s Retail Exchange Inflow – Spent Out Value Bands spiked to a 2-year high. Both inflows preceded sharp drops in BTC price, including a fall to $98,286 on the 22nd of June.
This kind of situation typically implies two things: a higher tendency for investors to sell their assets or hold them without trading, possibly transferring them outside the exchange into private wallets. Typically, when such significant minting occurs, Bitcoin absorbs the bulk of it, with only minimal amounts flowing into altcoins.
This indicates that both spot and derivatives investors are taking positions by buying the recent dip. The Bitcoin Market Value to Realized Value (MVRV) Ratio, a key indicator of whether an asset is being bought or sold, showed that buying pressure is dominant. The metric climbed to 2.212, trending higher from recent lows. That level, still below 3.7, often signals room for upside before overvaluation risk sets in.