Amid a renewed wave of optimism sweeping the broader cryptocurrency landscape, bitcoin‘s (btc) resurgence to the pivotal price threshold of $37,500 has become a catalyst for positive change.
Today, a staggering 85% of bitcoin holders are in a profitable position, a testament to the resilience and potential of the leading cryptocurrency. Encouragingly, key indicators hint at the likelihood of this percentage expanding alongside bitcoin‘s upward trajectory.
Make money with bitcoin
As the market plummeted from its all-time high in November 2021, the amount of bitcoin supply in profits reached levels last seen two years ago, according to Glassnode.
The analysis service also stated that the amount of unrealized profits contained in these coins is still very small.
According to the latest figures from blockchain analysis website IntoTheBlock, some 85% of bitcoin holders are profitable At the current price of the first cryptocurrency, 11% are losing money and 5% are barely breaking even.
With bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin Trading at yearly highs above $37,000 last week, more than 83% of the coin supply returned to profitable territory.
However, the magnitude of unrealized profits remains modest and is not yet enough for long-term investors to unload their investments.https://t.co/IGJpglF20J
– glass node (@glassnode) November 22, 2023
According to data provided by Glassnode, the current circulating supply of btc, which stands at 83%, is seen to have surpassed historical norms. Furthermore, it is approaching the upper threshold of +1 standard deviation, which is 90%.
bitcoin reached its peak of the year, rising to $37,900 on November 16, marking a major milestone in its performance. However, a subsequent pullback occurred, with the cryptocurrency retracing 4% from its recent high.
bitcoin inches closer to the $38K territory. Chart: TradingView.com
This pullback aligns with the current market cooldown, emphasizing the dynamic and receptive nature of cryptocurrency markets to prevailing conditions.
Strong Accumulation Trends for bitcoin
According to the latest statistics on November 23, bitcoin was observed trading at a price of 37,500. This value means an increase of 2.30% in the last 24 hours, an increase of 0.39% in the previous seven days and an advance of 9.93% compared to the previous month.
Glassnode stated that this recent surge has seen stronger accumulation patterns than others this year, based on an accumulation trend score. Prices experienced two notable increases at the end of January and the end of March, with increases of 40% and 50%, respectively.
Source: Glassnode
Glassnode’s research indicates that the current rise in bitcoin profitability has not incentivized its long-term holders to sell their holdings for profits.
A thorough evaluation of btc‘s unrealized gains (see chart above) indicates that it continues to persist at the historical average level of almost 50%.
The report characterizes this level as notably lower compared to the extremely high levels of 60% or more seen during the euphoric period of previous bull markets.
When combined with additional encouraging elements such as the hope for the approval of a potential spot exchange-traded fund (ETF) and the impending halving event, the aforementioned data is undoubtedly favorable for the flagship asset of decentralized finance. (DeFi).
Featured image from Freepik
