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Bitcoin is still “largely profitable” despite months of
sideways BTC price action, says new research.
In the latest edition of its weekly newsletter, The Week
On-Chain, published on June 18, analytics firm Glassnode
dispelled myths over investors’ unrealized losses
BTC price analysis flags “investor boredom and apathy”
Bitcoin may be trading within a rigid corridor, but the
majority of hodlers are not seeing a return on investment
evaporate as a result.
Summarizing current BTC price behavior as “establishing
equilibrium,” Glassnode pointed to multiple on-chain
metrics showing Bitcoin in a period of consolidation — not
capitulation.
“Sideways price movement tends to manifest as investor
boredom and apathy, which appears to be the dominant
response across all Bitcoin markets,” it wrote.
“BTC prices are consolidating within a well-established trade range. Investors remain in a generally favourable 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, researchers showed that on aggregate, a given amount of BTC is still up by more than two times, or 120%, versus its purchase price in United States dollar terms. The one-year average value of MVRV is currently 86%.
“The MVRV Ratio remains above its yearly baseline, suggesting that the macro uptrend remains intact,” accompanying commentary added.
Bitcoin speculators refuse to capitulate
The newsletter’s mood contrasts with some of the more panicked reactions to this week’s BTC price drop.
As Cointelegraph continues to report, traders are wary of
support trendlines disintegrating and multimonth lows
reappearing as a result.
Among the most important lines in the sand now on the
radar is the aggregate purchase price for Bitcoin’s
speculative investor base, the so-called short-term
holders (STHs).
The latest data from statistics resource LookIntoBitcoin
puts the STH cost basis at $64,000.
United Arab Emirates could become the next global crypto hub due to innovation-friendly regulations
Laser Digital’s operating license comes nearly nine months
after it received in-principal approval from ADGM in
September 2023.
The firm chose Abu Dhabi for its expansion plans due to
the innovation-friendly crypto regulations in the region,
according to Laser Digital’s CEO, Mohideen, who wrote:
Despite seeing unrealized gains fading, STH entities
themselves are not preparing for a mass sell-off at
current prices, Glassnode states.
“At present, Short-Term Holders are sending around +17.4k
BTC/day to exchanges,” it calculated.
“However, this is markedly lower than the peak of +55k BTC/day recorded as the market hit the $73k ATH in March, where speculation levels were becoming excessive.”
