Bitcoin Hodlers 120% in Profit Despite BTC’s Sluggish Movement: Research

As a seasoned crypto investor with several years of experience under my belt, I’ve learned to keep a level head during periods of market volatility and sideways price action. Based on the latest research from Glassnode, I believe that the current Bitcoin price movement is not a sign of capitulation but rather a period of consolidation.

People holding Bitcoin, the largest cryptocurrency by market value, have observed subdued price activity over the past few months, failing to maintain prices above the $73,000 threshold.

According to recent studies conducted by Glassnode, a leading blockchain analytics firm, Bitcoin has proven to be a profitable investment for its holders despite the extended period of price stagnation that started in March 2024.

As a researcher studying the latest trends in the crypto market, I’ve come across an intriguing observation from Glassnode’s weekly newsletter, “The Week On-Chain.” According to their analysis, a significant number of Bitcoin investors are currently experiencing green gains. Moreover, they emphasize that the current Bitcoin price trend is not indicative of capitulation but rather a phase of equilibrium and consolidation.

According to Glassnode’s analysis based on on-chain data, “prices moving sideways suggest a lack of excitement among investors, with this seeming to be the prevailing sentiment in all Bitcoin markets.”

As a crypto investor, I can tell you that Bitcoin’s prices are currently trading within a familiar price band. This means that the value of Bitcoin is bouncing back and forth between two specific levels without breaking out or collapsing. The good news for investors is that over 87% of the existing Bitcoin supply is in profit, meaning that those who have previously bought Bitcoin have made a profit on their investment. Additionally, most investors have purchased Bitcoin at prices lower than the current market price.

Based on Glassnode’s research, the value of a certain amount of Bitcoins has increased by over 120% from its price in US dollars. This analysis employed the Market Value to Realized Value (MVRV) ratio, indicating that the average MVRV for the past year hovers around 86%.

The researchers found that the MVRV (Moving Average Ratio Value) continues to exceed its annual average, implying that the larger market trend is still in an upward trajectory.

As a analyst, I’ve observed a notable decrease in the daily amount of Bitcoin (BTC) being sent from short-term holders (STH) to exchanges over the past few months. The current figure stands at approximately 17,400 BTC per day. This is a significant decline compared to the peak of around 55,000 BTC per day that was observed when Bitcoin reached its all-time high of $73,000 in March.

Bitcoin Price Action Remains Shaky

The trend of Bitcoin’s price has been unstable since it reached a new all-time high in March at $70,000. However, it hasn’t managed to sustain this level and the cryptocurrency has dropped by 3.05% over the past week and 2.30% within the last month, as indicated by CoinMarketCap data. Consequently, Bitcoin is currently exhibiting a sideways drift in its value.

I’m analyzing the current state of the Bitcoin market, and at the moment of writing this analysis, Bitcoin is priced at $65,309. However, there’s a 5.53% decrease in trading volume, amounting to $34 billion. The digital currency’s market capitalization reaches an impressive $1.2 trillion. It’s important to note that the price of Bitcoin represents a 11.5% decline from its all-time high of $73,000.

According to crypto expert “Ansem” in a recent post on X, Bitcoin’s price action is anticipated to exhibit a sideways trend through the end of Q3 or Q4. Contrary to the belief that the market has peaked, Ansem maintains this perspective and predicts Bitcoin will continue to trade within the range of $58,000 to $60,000 for an extended period.

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2024-06-19 12:20