These On-Chain Signals Are Flashing As Bitcoin Price Rises: Glassnode

As Bitcoin's price rose above $47,000 for the first time since last month, analysts say there are now fundamental indicators of strength across the board — and it goes beyond short-term price action.

BTC, the leading digital currency, has risen at the end of this week, reaching $47,146.61 at the time of writing. It is close to retrieving its short-term high of $49,000 after the launch of several Bitcoin spot ETFs last month.

Blockchain analysts are saying this isn't hype – there's plenty of evidence to support its benefits. According to lead Glassnode analyst James Check, Bitcoin's “Realized Cap,” a measure of Bitcoin's market value based on the price at which all coins last moved, has risen by $50 billion since October.

This reflects “real capital on-chain going into the orange coin,” according to X's post on Thursday's Check.

As usual, the network's hash rate continues to climb infinitely, but now it secures the network at 572 Exahash per second. This calculates to an estimated 71.5 billion people on Earth every second.

Bitcoin's economic input has also increased, putting $7.1 billion in pure economic transactions every day. The figure reached BTC's all-time high close to the April and November 2021 price peaks.

“More than 90% of BTC units are held by investors at a cost below the current price,” Cheek wrote. “The brute force of bear buying and holding Bitcoin has paid off.”

Based on Bitcoin's market-value-to-realized-value (MVRV) ratio, the average unit of BTC currently has a 100% profit. In USD terms, Czech said the entire network was sitting on a $448 billion profit.

Not all of these profits are going to the whales: there are now more than 1.37 million BTC owned by “shrimps,” or entities with less than 1 BTC.

Meanwhile, over 2.8 million Bitcoin addresses now have over $10,000 USD worth of BTC. That's just shy of a new all-time high of 68,000 addresses, according to Glasnode.

Finally, Bitcoin inflows and outflows rose to $3 billion per day, reflecting an increase in short-term interest in the asset. Since US Bitcoin ETFs went live, they have taken in over $2.2 billion in net income, including $400 million on Thursday alone.

Edited by Stacy Elliott.