Bitcoin plummeted to around $86,000 this week, but benefited from rumors that Middle Eastern sovereign wealth funds are about to publicly allocate BTC. According to the latest report from Bloomberg, the Public Investment Fund (PIF) of Saudi Arabia is evaluating the allocation of 1% of its assets to digital gold to hedge against the risk of US dollar inflation. At the same time, Glassnode's on-chain weekly report shows that the Bitcoin balance on exchanges has dropped to its lowest point in 6 years, forming a serious "Supply Shock."
CryptoQuant analysts pointed out that the selling willingness of long-term holders (LTH) this week is extremely low, which is completely different from the selling behavior observed earlier. Overall, both the fundamentals and market sentiment indicate a bullish trend. Strategy recommendation: "Long Spot" and focus on the historical high breakout point of $92,000.
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