Key Points
- Bitcoin holders have seen little movement in recent months, failing to maintain a price above $73,000.
- Despite this, research from Glassnode suggests Bitcoin has been largely profitable for investors.
Despite a lackluster performance in recent months, Bitcoin (BTC) holders have not been at a loss. The leading digital asset in the cryptocurrency market has struggled to maintain a price action above the $73,000 mark.
Glassnode, a blockchain analytics firm, suggests that Bitcoin has been profitable for investors, despite the sideways movement observed since March 2024.
Glassnode’s Analysis
In their weekly newsletter, “The Week On-Chain,” Glassnode reported that the majority of investors have seen their Bitcoin investments increase in value. The firm suggests that the current BTC price trajectory indicates a period of consolidation, not capitulation.
Glassnode’s on-chain metrics reveal that sideways price movement often results in investor apathy. Despite this, the firm maintains that investors are in a generally favorable position, with over 87% of the circulating supply held in profit.
Profitability and Short-term Holders
Glassnode’s research indicates that a certain number of Bitcoins have increased in value by more than twice, or 120%, compared to their purchasing value in USD. The Market Value to Realized Value (MVRV) metric was used in the report, which suggested that the current one-year average value of MVRV is almost 86%.
The researchers also noted that the number of short-term holders sending BTC to exchanges has significantly decreased over the past few months. Currently, they are sending around 17.4k BTC/day to exchanges, a considerable drop from the peak of +55k BTC/day recorded when Bitcoin reached an all-time high of $73,000 in March.
Bitcoin’s price trajectory has been unstable since reaching its new all-time high in March. The asset, valued at over a trillion dollars, has struggled to maintain prices above the $70,000 level. According to data from CoinMarketCap, BTC has dropped 3.05% in the last seven days and 2.30% in the last 30 days, indicating a period of sideways movement.
At the time of writing, Bitcoin is trading at a price of $65,309, with a 5.53% decline in trading volume, currently standing at $34 billion. BTC’s market capitalization is $1.2 trillion, and the digital asset is 11.5% down from its all-time high of $73,000.
Crypto analyst “Ansem” suggests that Bitcoin is likely to continue this sideways movement until the end of Q3/Q4. The analyst does not believe that the market has peaked and predicts that BTC will remain in the $58k–60k range for some time.
