- BTC holders continue to receive returns on their investments.
- This situation persists despite limited fluctuations in the coin's value.
New one Report Glassnode found that Bitcoin [BTC] Holders have held on to unrealised profits despite limited movement in major currencies over the past few weeks.
At press time, BTC traded at $65,625. Trending within a horizontal channel, the coin faced resistance at $71,656 and support at $64,825. However, despite this “sideways price movement,” BTC’s “investor profitability remains strong.”
According to the on-chain data provider:
“BTC prices are consolidating within a well-established trading range. Investors remain generally favorably positioned, with over 87% of the circulating supply in profit, and the cost basis remaining below the spot price.”
Glassnode assessed a coin’s market value to realized value (MVRV) ratio and found that the average BTC coin in circulation holds an unrealized profit of over 120%.
Source: Glassnode
Interestingly, no matter how profitable BTC holders are, the volume of coins being processed and transferred on the Bitcoin network has dropped significantly since the all-time high (ATH) of March,
Glassnode said the drop “underscores the waning interest in speculation and the indecision in the market.”
Low exchange activity
BTC’s price consolidation has also led to a decline in BTC exchange inflows. Glassnode found that short-term holders (STH) of BTC currently send around 17,400 BTC (worth $1.13 billion at current market prices) to exchanges daily.
These investors have held their coins for a relatively short period of time, typically less than 155 days.
Their current exchange inflows represent a 68% drop from the 55,000 BTC sent to exchanges by this group of investors when the coin climbed to an all-time high of $73,000 in March.
As for long-term holders (LTH), their distribution across exchanges is relatively low, with only a modest 1k+ BTC/day currently in flow.
Source: Glassnode
Glassnode said:
“LTHs are sending less than 0.006% of their total holdings to exchanges, indicating that this group has reached equilibrium and needs higher or lower prices to encourage further action.”
Read about bitcoin [BTC] Price Forecast 2024-25
The average BTC sent to exchanges generates a profit of around $5,500. This has prompted some investors who had held it for a long time to sell it for a profit.
As the market expects a rally to $73,750 ATH, there is enough demand to withstand the selling pressure. However, it is “not enough to push market prices higher.”