Cryptocurrencies

New Research Indicates Bitcoin Remains “Highly Profitable” Despite Months…

Bitcoin remains “highly profitable” despite months of sideways movement in Bitcoin prices, according to a new study.

In the latest edition of its weekly newsletter “The Week On-Chain,” published on June 18, analytics firm Glassnode dispelled myths about unrealized investor losses.

BTC Price Analysis Indicates “Investor Boredom and Apathy”

Bitcoin (BTC) may be trading in a strict corridor, but the majority of coin holders are not seeing their investment returns evaporate as a result.

Summarizing Bitcoin’s current price behavior as “balancing,” Glassnode highlighted several on-chain metrics that show Bitcoin is in a period of consolidation – not capitulation.

“Sideways price movements tend to manifest as investor boredom and apathy, which appears to be the dominant response across all Bitcoin markets,” she wrote.

“BTC prices are consolidating within an established trading range. Investors remain generally positive, with over 87% of the circulating supply realized at a profit, with a cost basis below the spot price.

Bitcoin auction percentage of profit (screenshot). Source: Glassnode

Using a measure of market value to realized value (MVRV), the researchers showed that in total, a given amount of Bitcoin is always more than double, or 120%, compared to its purchase price in US dollars. The average one-year MVRV is currently 86%.

“The MVRV ratio remains above the annualized baseline, indicating that the overall uptrend remains in place,” the accompanying commentary adds.

Bitcoin MVRV Momentum (screenshot). Source: Glassnode

Bitcoin speculators refuse to give up

The mood of the newsletter contrasts with some of the more panicked reactions to Bitcoin’s price decline this week.

Related: Bitcoin’s ‘Banana Zone’ Is Next If These 3 Indicators Hold True

As Cointelegraph continues to report, traders are concerned about support trendlines breaking and multi-month lows emerging.

One of the most important lines currently on the radar is the overall purchase price of Bitcoin’s speculative investor base, the so-called short-term holders (STH).

The latest data from statistical source Look Into Bitcoin puts the base cost of STH at $64,000.

Bitcoin STH price realized. Source: Watch Bitcoin

Even though unrealized gains have faded, the STH entities themselves are not preparing for a sale at current prices, notes Glassnode.

“Currently, short-term holders send approximately +17.4 thousand BTC per day to exchanges,” according to the calculation.

“However, this is significantly lower than the +55,000 BTC per day peak recorded when the market hit $73,000 ATH in March as speculative levels became excessive.”

Bitcoin exchange feed (screenshot). Source: Glassnode

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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