In the last week, bitcoin has attracted a lot of attention, gaining 2.58% in seven days, according to bitcoin/” target=”_blank” rel=”nofollow”>CoinMarketCap data. During this time, the leading cryptocurrency has gone from trading around $37,800 to almost surpassing the $39,000 price mark.
Following this positive price movement, bitcoin has recorded some impressive metrics, which could reinforce investor interest in the coming weeks.
bitcoin experiences highest level of profitability in two years
off to Friday's post on X, Blockchain analytics firm IntoTheBlock reported that 81.35% of all bitcoin holders are currently making profits. This marks the highest level of profitability experienced by btc investors since December 2021, when the token was valued at over $50,000.
btc profitability reaches its highest level since December 2021!
More than 80% of bitcoin addresses are currently making profits. This is the highest value since December 2021, when prices exceeded $50,000 per bitcoin.
https://t.co/qWhryCeM0D pic.twitter.com/Dod0PuuWbF– IntoTheBlock (@intotheblock) December 1, 2023
Interestingly, bitcoin's profitability is likely to increase, and several factors indicate that the market leader could soon cross into the $40,000 price zone.
First, there is currently a high level of optimism regarding the approval of a bitcoin Spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). On Friday, Bloomberg analyst James Seyffart injected a lot of excitement into the crypto community by predicting that this potential approval order would occur between January 8 and 10, 2024.
Therefore, in anticipation of the massive institutional demand that a spot ETF could introduce into the btc market, investors are likely to begin increasing their bitcoin holdings, which could result in a price surge in the coming weeks. .
In addition, the president of the United States Federal Reserve, Jerome Powell has made statements suggesting that there would probably be no more rate hikes in the coming months. This development, if true, paves the way for bitcoin, along with other digital assets, to experience further price gains as increases in interest rates from the Federal Reserve are known to discourage investments in high-risk assets. like cryptocurrencies.
However, despite these favorable indicators, it is worth noting that the cryptocurrency market remains subject to multiple forces, and all investors are advised to conduct proper research before entering the market.
bitcoin network fees reduced by 50%
Other positives for the btc community are that the bitcoin network saw a 50% decrease in total fees in the last week. In the block reports that this development was due to a drastic decrease in ordinal-related transactions.
The Ordinals protocol, launched in January 2023, enables the creation of non-fungible tokens (NFTs) known as BRC-20 tokens on the bitcoin network. Just like on the ethereum network with its native NFTs, a high level of interest in Ordinals generates high network fees and vice versa.
At the time of writing, bitcoin is trading at $38,758, down 0.17% in the last hour. Meanwhile, the asset's daily trading volume increased by 4.97% and is valued at $20.37 billion.
<img decoding="async" class="aligncenter size-large" src="https://technicalterrence.com/wp-content/uploads/2023/12/More-than-80-of-Bitcoin-holders-now-profit" alt="bitcoin” width=”1480″ height=”893″ loading=”lazy”/>
btc trading at $38,810 on the daily chart | Source: BTCUSD chart on Tradingview.com
Featured image from iStock, chart from Tradingview
