Research Shows Bitcoin's Uptrend 'Intact' with Hodlers 120% in Profit
Bitcoin remains "largely profitable" despite months of sideways price action, according to fresh research from analytics firm Glassnode.
In its latest "The Week On-Chain" newsletter, published on June 18, Glassnode debunked myths about investors' unrealized losses, highlighting that the majority of Bitcoin holders are still in profit.
Bitcoin may be trading within a narrow range, but Glassnode's analysis shows that most investors are not losing money. The firm described the current BTC price behavior as "establishing equilibrium," noting that Bitcoin is in a consolidation phase, not a capitulation.
"Sideways price movement tends to manifest as investor boredom and apathy, which appears to be the dominant response across all Bitcoin markets," Glassnode stated. "BTC prices are consolidating within a well-established trade range. Investors remain in a generally favorable position, with over 87% of the circulating supply held in profit, with a cost basis below the spot price."
Using the Market Value to Realized Value (MVRV) metric, Glassnode demonstrated that on average, Bitcoin is up by more than 120% compared to its purchase price in U.S. dollar terms. The one-year average MVRV value stands at 86%, indicating that the macro uptrend remains intact.
Despite recent BTC price drops causing some panic, Glassnode's analysis provides a more optimistic outlook. The firm pointed out that speculative investors, known as short-term holders (STHs), are not rushing to sell off their holdings, even as unrealized gains decrease.
Glassnode noted that the current rate of Bitcoin being sent to exchanges by STHs is around 17,400 BTC per day. This is significantly lower than the peak of 55,000 BTC per day recorded when Bitcoin hit its all-time high of $73,000 in March, suggesting that speculation levels are not excessive.
Traders are keeping an eye on critical support levels, but the data indicates that Bitcoin's core investor base is maintaining confidence.
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