Key Points
- Bitcoin (BTC) price has risen to $44,500, signaling a potential rally to $50,000.
- On-chain indicators suggest further gains for Bitcoin, with a strong support at $43,080.
- 90% of all Bitcoins are currently in profit, according to the Stock-to-Flow model created by PlanB.
- Only those who bought Bitcoin at its 2021 peak price are experiencing losses.
- Bitcoin price is up by more than 4% in the last 24 hours, reaching $44,500 for the first time since the Bitcoin ETF launch last month.
- The increase in Bitcoin price is partially attributed to large wallets holding over 1,000 Bitcoins.
- The performance of US stock markets is also supporting the rise in Bitcoin price.
Bitcoin’s Consolidation Phase Ends
The consolidation phase for Bitcoin appears to be ending.
The BTC price has broken out to $44,500, hinting at a potential rally to $50,000.
On-chain indicators continue to show strength, suggesting further gains for Bitcoin.
There is strong support at $43,080.
90% of Bitcoin Holders in Profit
PlanB, the creator of the Stock-to-Flow model for Bitcoin, recently shared a BTC chart.
The chart indicates that 90% of all Bitcoins are currently in profit.
This is the highest number of Bitcoin holders in profit since Bitcoin’s peak at $69,000 in mid-November 2021.
PlanB provided a comprehensive analysis of the chart in a YouTube video linked in the tweet.
Bitcoin’s Profitability
Currently, the chart displays orange dots, signifying that 90% of all mined Bitcoins are profitable.
PlanB clarified that red dots will appear on the chart when 100% of all Bitcoin becomes profitable, with red dots always following the current orange ones.
PlanB noted that the profitability is not likely to drop to 60% (as indicated by the yellow dots on the chart) until the metric reaches the “red” level of profitability.
Currently, only those who purchased Bitcoin at the 2021 price peak are experiencing losses, while all other BTC holders are currently in a profitable position.
BTC Price Rally
Amid a strong recovery in the broader cryptocurrency market, Bitcoin price is up more than 4% in the last 24 hours, reaching $44,500.
This is the first time that the BTC price has crossed $44,000 ever since the spot Bitcoin ETF launch last month.
According to insights from on-chain data provider Santiment, this resurgence is partially credited to the uptick in holdings among wallets containing over 1,000 Bitcoins.
The collective holdings of these large wallets have surged to their highest level in over 14 months, indicating renewed confidence among major Bitcoin holders.
US Stock Market’s Influence
The ongoing momentum in US stock markets also provided support for risk assets such as cryptocurrencies.
The S&P 500 closed at a record high, nearing the 5,000 level, while the Dow Jones Industrial Average approached its all-time high, and the Nasdaq Composite edged closer to its record.
Given the enduring correlation between cryptocurrencies and the S&P 500, there is an expectation that Bitcoin, Ethereum, and other cryptocurrencies will eventually catch up.
Analysts are also expecting a pre-halving rally for Bitcoin going ahead. On the other hand, the Bitcoin miners have been selling heavily to raise capital to add more rigs to their mining fleet.
