Bitcoin [BTC]: Recent price jump has put holders in profit, new report shows

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  • At press time, BTC was trad­ing at a price lev­el last seen in August 2022.
  • The ral­ly in price since the begin­ning of the year has put many hold­ers in profit.

Strong gains between 20 – 22 Jan­u­ary pushed Bitcoin’s [BTC] price to ral­ly by over 2% dur­ing the intra­day trad­ing ses­sion on 23 Jan­u­ary. This caused the lead­ing coin to trade at lev­els last seen in August 2022, data from Coin­Mar­ket­Cap showed. 

Read Bitcoin’s [BTC] Price Pre­dic­tion 2023–2024

With BTC cur­rent­ly exchang­ing hands above the $23,000 price mark, lead­ing on-chain data provider Glassnode, in a new report, not­ed shifts in the behav­iors of new investors (short-term hold­ers), long-term hold­ers, and min­ers, which might indi­cate prof­it-tak­ing, fol­low­ing a sig­nif­i­cant bear­ish trad­ing peri­od in 2022.

On-chain metrics point to one thing

Accord­ing to the report, an assess­ment of BTC’s Per­cent Sup­ply in Prof­it met­ric revealed that the surge in price since the year start­ed rep­re­sent­ed one of the sharpest spikes in prof­itabil­i­ty com­pared to pri­or bear markets.

Accord­ing to Glassnode, in the cur­rent bear mar­ket that began in Novem­ber 2021, BTC’s Net Real­ized Prof­it and Loss met­ric has suf­fered two large capit­u­la­tion events (Ter­ra-Luna and FTX col­lapse), which result­ed in a net loss of 2.9% and 3.7% of the king coin’s mar­ket cap­i­tal­iza­tion per week, respectively. 

How­ev­er, with a spike in BTC prof­itabil­i­ty in the past few weeks, Glassnode found that the mar­ket has shift­ed to a state of prof­it dom­i­nance, which it described as a:

“Promis­ing sign of heal­ing after the heavy delever­ag­ing pres­sures inflict­ed in the sec­ond half of 2022.”

Source: Glassnode

Fur­ther, in deter­min­ing what new BTC investors have been up to, Glassnode assessed the coin’s Per­cent­age of Short-Term Hold­er Sup­ply in Prof­it met­ric. It found that the recent surge in Bitcoin’s price to $23,000 pushed this met­ric to above 97.5% in prof­it for the first time since the all-time high in Novem­ber 2021.

How­ev­er, investors should remain cau­tious, as when more than 97.5% of short-term hold­er sup­ply is in prof­it, these play­ers are more like­ly to exit at break-even or prof­it, Glassnode opined. 

Source: Glassnode

To sus­tain the cur­rent ral­ly, Glassnode said:

“There­fore, the sus­tain­abil­i­ty of the cur­rent ral­ly can be con­sid­ered a bal­ance between inflow­ing and new­ly deployed demand, meet­ing the sup­ply drawn out of investor wal­lets by these high­er prices.”

Is your port­fo­lio green? Check out the Bit­coin Prof­it Calculator

As for long-term hold­ers of the king coin, fol­low­ing the shake in con­vic­tion that led many of them to dis­trib­ute their BTC hold­ings when FTX col­lapsed, the recent jump in price has led to an incre­ment in long-term hold­ings. Glassnode said:

“The sup­ply held by HODLers has shift­ed from a con­trac­tion of ‑314k BTC/month fol­low­ing FTX col­laps­ing to an expan­sion at a rate of +100k BTC/month.”

Source: GlassnodeLast­ly, as for the min­ers oper­at­ing the BTC net­work, an analy­sis of the Puell Mul­ti­ple revealed:

“That the rel­a­tive min­er rev­enue has increased by 254% com­pared to ear­ly Jan­u­ary, high­light­ing how immense the finan­cial stress expe­ri­enced by the indus­try has been through­out the bear market.”

Source: Glassnode

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