As a seasoned crypto investor with a few years under my belt, I have seen my fair share of market volatility and price swings. The recent Bitcoin rally above $60,000 has brought renewed optimism among investors, especially after the steep correction in June 2024 that saw prices plummet to as low as $53,500.
Bitcoin remains steadfast in its writing, hovering above the $60,000 mark. Despite a sense of weariness in the uptrend and diminishing momentum, indicators suggest profitability remains strong.
93% Of Bitcoin Addresses Are In The Money
Based on my research up to July 22, Bitcoin has been relatively steady but has dipped approximately 8% from its record peak of roughly $74,000. According to data from IntoTheBlock, over 93% of all addresses are currently profitable at current market prices.
Despite the significant decline in prices, reaching a low of $53,500 in late June and early July 2024, this situation represents a substantial rebound and reversal.
A significant number of Bitcoin holders are currently experiencing a loss based on the current market price. It’s reasonable to assume that these individuals purchased their Bitcoins around $72,000 or at the all-time high, with the hope of seeing prices surge to $100,000.
It unfolded that Bitcoin experienced a significant decline of approximately 21% from its peak to the lowest point in July 2024, causing distress for some investors who were compelled to sell at a loss.
The rebound of Bitcoin above $67,000 has boosted the confidence of Bitcoin investors, particularly those who have recently purchased the cryptocurrency. These investors, referred to as short-term holders (STHs), are individuals or entities that have acquired Bitcoin within the past 155 days. When the price surpassed $63,000, these STHs started seeing profits, which led to a reduction in selling pressure.
Miners Accumulating BTC As Uptrend Confirmed
It’s intriguing to note that as Bitcoin prices rise, miners seem reluctant to sell their newly mined Bitcoins.
During the month of July, according to IntoTheBlock’s data, miners showed significant cryptocurrency buying activity. Notably, major mining operations such as Mara Digital and Riot Blockchain acquired approximately 4,500 Bitcoin within a three-week period.
The optimistic outlook and rising anticipations for Bitcoin prices have extended beyond the cryptocurrency market, influencing the stock prices of related companies. Last week, shares of MARA and RIOT surged by more than 30%, reflecting investor confidence in these publicly-traded mining firms. Investors believe that these companies will carry on expanding their operations in the near future.
Simultaneously, it has come to light that entities controlling over 1,000 Bitcoins have been actively amassing them. Reaching a two-year peak, their Bitcoin holdings amounted to this figure by July 19th.
As a researcher studying the cryptocurrency market, I’ve noticed an intriguing trend emerging with the Bitcoin Market Value to Realized Value (MVRV) ratio. This particular metric is employed to assess profitability levels among Bitcoin holders. Recently, the MVRV ratio has been on an upward trajectory. One astute observer reported that as of July 22, this ratio had rebounded from its one-year moving average, signaling that the Bitcoin price uptrend is genuine and profitable for long-term investors.
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2024-07-22 23:11