bitcoin is holding firm at the time of writing, hovering higher and above $60,000. Although the uptrend seemed laborious and momentum was waning, there are signs that all is well, at least from a profitability standpoint.
93% of bitcoin addresses are in the money
As of July 22, bitcoin is holding steady and is down roughly 8% from its all-time highs of around $74,000. IntoTheBlock x.com/intotheblock/status/1815321093617414608″ target=”_blank” rel=”noopener nofollow”>data showed that 93% of all addresses are in the green at spot rates.
In any case, this is a significant recovery and a turnaround, especially after the major sell-off in June and early July 2024, when prices fell to $53,500 before rebounding.
At the current valuation, a minority of btc holders are in the red. These entities likely bought at around $72,000 or all-time highs, expecting prices to rise to $100,000.
bitcoin reportedly fell as much as 21% from its all-time highs to July 2024 lows before finding a respite. The sell-off also forced some holders to exit at a loss.
The recovery above $67,000 has helped restore confidence among btc holders, especially short-term holders (STH). STHs are entities that have purchased btc in the past 155 days. When prices broke above $63,000, holders within this category started taking profits, which eased selling pressure.
Miners accumulate btc as bullish trend is confirmed
Interestingly, as bitcoin prices rise, it is also emerging that miners are not interested in selling.
Throughout July, IntoTheBlock data x.com/intotheblock/status/1814344946024907107″ target=”_blank” rel=”noopener nofollow”>revealed that miners had been aggressively accumulating. Major mining farms like Mara Digital and Riot Blockchain have accumulated over 4,500 btc in the past three weeks alone.
Positive sentiment and expectations for btc prices to rise have spread, impacting its share prices. Last week, data from IntoTheBlock x.com/intotheblock/status/1814692173905879519″ target=”_blank” rel=”noopener nofollow”>presented MARA and RIOT shares rose by more than 30%. Investors have backed these public mining companies, saying they will continue to expand in the coming weeks.
At the same time, entities holding at least 1,000 btc are rapidly accumulating. By July 19, the amount of btc held by this group was at a two-year high.
Amid this development, bitcoin's market cap to realized value (MVRV) ratio, used to measure profitability, is increasing. An analyst x.com/PositiveCrypto/status/1815353329997799687″ target=”_blank” rel=”noopener nofollow”>grades that as of July 22, MVRV was bouncing off its one-year moving average, confirming that btc’s uptrend is valid.
Featured image from Canva, chart from TradingView