Bitcoin (BTC) in Profit Despite Price Stagnation: What This Means for the Market

A new analysis by Glassnode reveals a surprising statistic: 87% of Bitcoins in circulation are in profit. This data, contrasting with the stagnation of BTC prices in recent weeks, offers an intriguing insight into the current market state and its prospects.

A recent analysis by Glassnode has revealed a surprising statistic: 87% of the Bitcoin (CRYPTO: BTC) in circulation is currently in profit. This data is particularly interesting when contrasted with the relative stagnation of BTC prices in recent weeks.

What Happened: While the price movements of the leading crypto have been restricted, with Bitcoin trading within a horizontal channel with resistance at $71,656 and support at $64,825 at last check, the majority of the coin's circulating supply is showing a green balance sheet.

“BTC prices are consolidating within a well-established range. Investors remain overall in a favorable position, with more than 87% of the circulating supply in profit, with a break-even point below the spot price,” noted Glassnode.

The Market Value to Realized Value (MVRV) ratio of Bitcoin shows that the average circulating BTC holds an unrealized profit of more than 120%.

However, despite this profitability, the volume of coins being transacted and moved on the Bitcoin network has dropped significantly since the historical peak in March.

“Highlighting a reduced appetite for speculation and increased market indecision, the volume of coins processed and transacted has fallen substantially,” noted Glassnode.

Short-term holders (STHs) are currently sending about 17,400 BTC (valued at $1.13 billion at current market prices) to exchanges each day, a drop of 68% compared to the 55,000 BTC sent by this group of investors when the coin reached a historical peak of $73,000 in March, as noted by Glassnode.

Regarding long-term holders (LTHs), their transfers to exchanges are relatively low, with only about 1,000 BTC/day currently.

“LTHs send less than 0.006% of their total holdings to exchanges, suggesting that this group has reached an equilibrium and that higher or lower prices are needed to stimulate further action,” noted Glassnode.

The Bitcoin sent to exchanges generates an average profit of about $5,500, prompting some investors to sell to realize gains.

While the market anticipates a rally towards the historical peak of $73,750, the demand is sufficient to absorb the selling pressure but not large enough to drive up the BTC price. A dynamic indicating some indecision among investors…

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News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-profit-price-stagnation-market.html

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