Miami, Florida – Bitcoin (BTC) holders in the cryptocurrency market continue to witness profits despite the coin’s lack of significant price movements. A recent report by Glassnode highlighted the resilience of BTC investors, who have managed to maintain unrealized profits, even as the coin’s value has remained relatively stagnant in recent weeks.
As of the most recent data, BTC was trading at $65,625, moving within a tight range with resistance at $71,656 and support at $64,825. Despite the sideways movement in price, investors have seen strong profitability. According to Glassnode, over 87% of the circulating supply of BTC is currently held at a profit, with a cost basis below the current market value.
Glassnode’s assessment of the Market Value to Realized Value (MVRV) ratio for BTC revealed that the average coin in circulation is holding an unrealized profit of over 120%. This indicates the significant gains that BTC holders have been able to achieve, even in a market with limited price action.
Interestingly, while BTC holders are enjoying substantial profits, the volume of coins being transferred and processed on the Bitcoin Network has decreased significantly since reaching its all-time high in March. Glassnode noted that this decline reflects a decreased interest in speculation and increased uncertainty among market participants.
The consolidation of BTC’s price has also led to a decline in exchange flows, particularly from short-term holders (STHs) who send approximately 17,400 BTC to exchanges daily. This represents a significant decrease from the 55,000 BTC sent to exchanges when the coin hit its all-time high of $73,000. On the other hand, long-term holders (LTHs) have shown minimal activity, with only marginal inflows into exchanges.
Glassnode highlighted that LTHs are currently sending less than 0.006% of their total holdings to exchanges, indicating a level of equilibrium among this group of investors. The data suggests that significant price movements may be necessary to prompt further action from LTHs in the market.
As the market awaits a potential rally to surpass the previous all-time high, there is enough demand to absorb selling pressure from long-term holders looking to capitalize on profits. However, the current demand may not be sufficient to drive prices higher in the near term. This dynamic reflects the delicate balance between profit-taking and market demand in the cryptocurrency space.