July 24, 2024
Bitcoin Price Uptrend Stable as Hodlers See 120% Profit
Bitcoin price today

Bitcoin Price Uptrend Stable as Hodlers See 120% Profit

Wednesday, June 19, 2024: Bitcoin Price Today is $65,084. Despite months of Bitcoin trading within a rigid price corridor, new research from analytics firm Glassnode indicates that most Bitcoin holders are still seeing profits. In the latest edition of its weekly newsletter, “The Week On-Chain,” published on June 18.

Glassnode addressed the misconception that investors are facing unrealized losses due to the recent sideways movement of Bitcoin prices. Instead, the firm suggests that Bitcoin is in a period of consolidation, which they describe as “establishing equilibrium,” rather than entering a phase of capitulation.

Bitcoin % supply in profit (screenshot). Source: Glassnode

Investor Sentiment and Market Metrics

The recent sideways price movement of Bitcoin has led to a general sense of investor boredom and apathy, according to Glassnode. However, the firm emphasizes that this should not be mistaken for a bearish market, the newsletter states:

“BTC prices are consolidating within a well-established trade range. Investors remain in a generally favourable position, with over 87% of the circulating supply held in profit, with a cost basis below the spot price.”

.This sentiment is backed by multiple on-chain metrics which suggest that Bitcoin is maintaining a period of stability rather than experiencing significant declines.

Market Value to Realized Value (MVRV) Insights

A key metric used by Glassnode to assess the current state of Bitcoin’s profitability is the market value to realized value (MVRV) ratio. This metric shows that on aggregate, Bitcoin is still up by more than two times, or 120%, compared to its purchase price in US dollar terms. The one-year average value of the MVRV ratio currently stands at 86%, indicating that the macro uptrend for Bitcoin remains intact. The accompanying commentary in the newsletter reinforces this view, suggesting that the overall market trend for Bitcoin is still upward, despite the recent lack of significant price movement.

Bitcoin MVRV momentum (screenshot). Source: Glassnode

Short-Term Holders’ Behavior

Amid the general market stability, short-term holders (STHs) of Bitcoin are also showing resilience. According to data from LookIntoBitcoin, the aggregate purchase price for Bitcoin’s speculative investor base is around $64,000. Despite recent price drops and the fading of unrealized gains, STH entities are not preparing for a mass sell-off at current prices.

Glassnode’s calculations show that short-term holders are currently sending approximately +17.4k BTC per day to exchanges, indicating steady, not panic-driven, market activity.

“However, this is markedly lower than the peak of +55k BTC/day recorded as the market hit the $73k ATH in March, where speculation levels were becoming excessive.”

Bitcoin STH realized price. Source: LookIntoBitcoin

Conclusion

Overall, Glassnode’s research paints a picture of a stable Bitcoin market where most investors remain in a profitable position. Despite sideways price action and some market concerns, the fundamental metrics suggest that Bitcoin is consolidating rather than capitulating. The behavior of both long-term and short-term holders supports this view, indicating confidence in the ongoing strength of Bitcoin’s market position.

Image by Miloslav Hamřík from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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