Bitcoin [BTC] Holders Continue to Hold Unrealized Profits Despite Narrow Price Movements

A new report by Glassnode found that Bitcoin [BTC] holders have continued to hold unrealized profits despite the leading coin’s narrow movements in the past few weeks.

A recent report by Glassnode has shown that despite Bitcoin’s (BTC) limited price movements in recent weeks, holders of the coin continue to maintain unrealized profits.

At press time, BTC was valued at $65,625. Moving within a horizontal channel, the coin faced resistance at $71,656 and found support at $64,825. However, despite this “sideways price movement,” BTC’s “investor profitability remains robust.”

According to the on-chain data provider,

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

Assessing the coin’s Market Value to Realized Value (MVRV) ratio, Glassnode found that the average BTC coin in circulation holds an unrealized profit of over 120%.

Source: Glassnode

Interestingly, despite the profitability of BTC holders, the volume of coins being processed and transferred on the Bitcoin Network has declined significantly since March’s all-time high (ATH).

According to Glassnode, this decline “underscores a reduced appetite for speculation and heightened indecision in the market.”

Low exchange activity

BTC’s price consolidation has also led to a decline in BTC exchange flows. According to Glassnode, BTC’s short-term holders (STHs) are currently sending about 17,400 BTC (valued at $1.13 billion at current market prices) to exchanges daily.

These investors have held their coins for a relatively short period, usually less than 155 days.

Their current exchange inflows show a 68% decline from the 55,000 BTC sent to exchanges by this cohort of investors when the coin reached an ATH of $73,000 in March.

As for long-term holders (LTHs), their “distribution into exchanges is relatively low, with only a marginal 1k+ BTC/day in inflows currently.”

Source: Glassnode

According to Glassnode,

“LTHs are sending less than 0.006% of their total holdings into exchanges, suggesting that this cohort has reached equilibrium and that higher or lower prices are required to stimulate further action.”

Read Bitcoin’s (BTC) Price Prediction 2024-25

The average BTC sent to exchanges shows a profit of about $5,500. This has led some investors who have held for long to sell for profit.

As the market anticipates a rally to the $73,750 ATH, there is sufficient demand to absorb the selling pressure. However, it is “not large enough to push market prices higher.”

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-holders-continue-hold-unrealized-profits-narrow-price-movements.html

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