Bitcoin Price Rises ‘Untouched’ With Hodlers Gaining 120% – Research
Despite months of BTC price action, Bitcoin is still “mostly profitable,” says a new study.
In the latest edition of its weekly newsletter, published on June 18, analyst firm Glasnode published a myth on investors' unrealized losses.
BTC Price Analysis Shows “Investor Boredom and Apathy”.
Bitcoin (BTC) may be trading in a bullish corridor, but most hodler traders aren't seeing a return on investment as a result.
Summarizing BTC's current price behavior as “establishing equilibrium,” Glassnode pointed to several on-chain metrics that show Bitcoin in a period of consolidation — not capital.
“Lateral price movement is defined as investor boredom and indifference, which seems to be the main reaction in all Bitcoin markets,” he wrote.
“BTC prices are consolidating in a well-established trading range. Investors generally remain in a comfortable position, more than 87% of the circulating supply is held in profit, the price is below the spot price.
Using the market value-to-virtual value (MVRV) measure, they showed that, in total, a certain amount of BTC was more than twice, or 120%, the purchase price of the United States dollar. The one-year average value of MVRV is currently 86%.
“The MVRV ratio remains above its annual baseline, suggesting that macro growth remains intact,” the commentary added.
The Bitcoin speculators refused to capitulate
The sentiment of the newsletter contrasts with some of the more panicked reactions to BTC's price drop this week.
Related: Bitcoin's ‘Banana Zone' Is Next If You Play These 3 Indicators
As Cointelegraph continues to report, traders will be wary of the disintegration of support trends and the resulting resurgence of multi-month lows.
Among the most important lines in the sand on the radar right now is the overall purchase price for Bitcoin speculative investors, so-called short-term holders (STHs).
The latest data from LookIntoBitcoin Stats puts the cost of STH at $64,000.
Despite seeing unrealized gains fade, STH's The components themselves aren't being made for wholesale at current prices, Glassnode noted.
“Currently, short-term holders are sending around +17.4k BTC/day to exchanges,” he calculated.
“However, this is lower than the +55k BTC/day recorded in March when the market hit a $73k ATH, where speculation levels were rising too much.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
