Bitcoin is experiencing a significant increase in its 'hot supply' as new investors engage with the market, coinciding with a rise in BTC prices. According to on-chain analytics firm Glassnode, the amount of Bitcoin that has changed hands in the last week has surged by over 90%, bringing the total 'hot capital' to nearly $40 billion. This increase reflects a shift from dormancy to speculation among short-term holders, with 'hot capital' rising by over $21.5 billion since local lows in March. Although profits for short-term holders are on the rise, metrics such as daily active addresses indicate that the market has not fully transitioned into a bull phase yet. Despite these signs of increased investment interest and market sentiment, underlying engagement remains subdued, suggesting that a complete recovery is still in progress.

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