Bitcoin breached the $50,000 barrier once again for the first time since December 2021 as it rallied 15% in February. However, facing an overhead resistance at this level, the cryptocurrency's price slipped by over 2% on February 13 following a US Consumer Price Index report indicating a higher-than-expected annual inflation rate.
Data from blockchain analytics firm Glassnode suggests that the Bitcoin market might be entering a transitional phase, as long-term holders have spent over 300,000 Bitcoins since November 2023. The current price puts a majority of investors in a position to consider taking profits, particularly as only 13% of the total supply is in a state of loss above $48,000.
Notably, after Bitcoin reached $50,000, the ratio of unspent transaction outputs (UTXOs) -- a measure of transaction outputs that can be used in new transactions -- hit 96.62%. This high figure suggests that coins haven’t moved since their creation in that transaction and that investors are beginning to see more profit.
Despite this, Bitcoin ETF inflows have soared, with the net cumulative flows for 10 ETFs reported by Bloomberg's senior ETF analyst, Eric Balchunas, exceeding $3 billion. Other data from CoinShares show that total crypto assets under management reached a peak of $59 billion, the highest since 2022.
