In the last week, bitcoin (btc) hit an all-time high above $109,000 as Republican billionaire Donald Trump became the 46th president of the United States. However, the leading crypto asset has since declined, with its current market price now below $105,000. Interestingly, current data on the profitability of bitcoin holders supports the bullish market structure, indicating little potential for bearish sentiment.
bitcoin Holders See Huge Profits: Long-Term Investors Jump 70%
In the cryptocurrency market, the profitability of holders of an asset based on its realized price, that is, the average cost of acquisition, is an important metric for predicting investor sentiments. in a <a target="_blank" href="https://cryptoquant.com/insights/quicktake/679511ffc09a2f3ea0149445-How-Profitable-Are-bitcoin-Holders-Right-Now” target=”_blank” rel=”noopener nofollow”>Quick post On CryptoQuant, an analyst with the username Crazzyblockk has provided insights into the profitability of bitcoin holders at three main levels.
The analyst claims that CryptoQuant data reveals that long-term btc holders, i.e. investors of more than 6 months, are currently experiencing an average gain of 70%. Meanwhile, short-term holders, meaning those less than six months old, are making a modest 14.5% gain, reflecting their ability to accurately navigate recent market conditions.
Finally, despite limited exposure, new investors, i.e. bitcoin holders for less than 1 month, are making a small profit of 4.7%. Based on this data, no level of btc holders are currently facing significant losses that would reduce the possibility of a large-scale market sell-off.
Importantly, while profitability percentages have shown a minor decline relative to previous weeks and months, the btc market is unlikely to fall into a bearish phase as short-term holders and new participants in the market continue to post substantial gains.
The relevance of these bitcoin holder levels is due to the continued distribution by long-term bitcoin holders who are currently making profits. For example, popular crypto analyst Ali Martinez <a target="_blank" href="https://x.com/ali_charts/status/1883323721462804762″ target=”_blank” rel=”noopener nofollow”>information that long-term bitcoin holders lost 75,000 btc last week.
These substantial amounts of bitcoin dumped by long-term holders are purchased by short-term holders and new investors, removing the effect of any potential selling pressure in the market. Therefore, if these investors begin to incur losses, strong bearish pressure on btc could be triggered.
btc Price Overview
At press time, bitcoin is trading at $104,737, reflecting a 0.09% gain over the past day. The inaugural cryptocurrency fell 0.46% on the weekly chart. However, a price gain of 8.71% over the last 30 days reflects the current bullish structure of the btc market.
Following Donald Trump's inauguration, expectations for btc are likely to rise considering the new US president's pro-crypto manifesto. So far, President Trump's administration appears to be off to a promising start, marked by the SEC's repeal of the controversial SAB 121 and an executive order exploring the establishment of a national digital asset reserve.
Featured image by bitperfect, Tradingview chart
