- BTC holders continue to see gains on their investments.
- This has remained despite the limited price movements of the currency.
A new report from Glassnode discovered that Bitcoin [BTC] holders have continued to hold on to unrealized gains despite the leading currency’s limited moves in recent weeks.
At the time of writing, BTC exchanged hands at $65,625. The coin is moving within a horizontal channel and has encountered resistance at $71,656 and found support at $64,825. However, despite this “sideways price movement,” BTC’s “profitability for investors remains robust.”
According to the on-chain data provider:
“BTC prices are consolidating within an established trading range. Investors are still in a broadly favorable position, with more than 87% of circulating supply in profit, with a cost base that is below spot.”
Glassnode assessed the coin’s market value to realized value (MVRV) ratio and found that the average BTC coin in circulation has an unrealized gain of over 120%.
Source: Glassnode
Interestingly, despite how profitable BTC holders are, the number of coins processed and transferred on the Bitcoin network has declined significantly since the all-time high in March (ATH).
Glassnode noted that this decline “underlines a reduced appetite for speculation and increased market indecision.”
Low exchange activity
The price consolidation of BTC has also led to a decline in BTC exchange flows. Glassnode found that BTC short-term holders (STHs) are currently sending approximately 17,400 BTC (valued at $1.13 billion at current market prices) to exchanges every day.
These investors have held their coins for a relatively short period of time, typically less than 155 days.
Their current inflows into the currency markets represent a 68% decline from the 55,000 BTC sent to exchanges by this cohort of investors when the coin climbed to an all-time high of $73,000 in March.
As for long-term holders (LTHs), their “distribution on the exchanges is relatively low, with only marginal inflows currently exceeding 1,000 BTC/day.”
Source: Glassnode
Glassnode said:
“LTHs are sending less than 0.006% of their total holdings to exchanges, suggesting that this cohort has reached equilibrium and that higher or lower prices are needed to stimulate further action.”
Read Bitcoin’s [BTC] Price forecast 2024-25
The average BTC sent to exchanges generates a profit of approximately $5,500. This has caused some long-held investors to sell their shares for a profit.
With the market expecting a rally to the $73,750 ATH, there is enough demand to offset the selling pressure. However, it is “not big enough to push up market prices.”