By
Chimamanda U. Martha
June 26th, 2024
Bitcoin has been “largely profitable” to investors, irrespective of the months of sideways movement witnessed since March 2024.
The holders of Bitcoin (BTC price data), the leading digital asset in the crypto market by market capitalization, have witnessed sluggish movement in the past few months, unable to retain price action above the $73,000 price level.
Notably, as per research from blockchain analytics firm Glassnode, Bitcoin has been “largely profitable” to investors, irrespective of the months of sideways movement witnessed since March 2024.
In its weekly newsletter, “The Week On-Chain,” Glassnode stated that a majority of investors have their Bitcoin bags shining green, adding that the current BTC price trajectory is “establishing equilibrium” and the leading cryptocurrency is witnessing a period of consolidation and not capitulation.
Using on-chain metrics, Glassnode explained that “sideways price movement tends to manifest as investor boredom and apathy, which appears to be the dominant response across all Bitcoin markets,” further adding:
“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.”
According to Glassnode researchers, a given number of Bitcoins is up by more than two times, or 120%, when compared to the coin’s purchasing value in terms of the United States dollar. The report used the Market Value to Realized Value (MVRV) metric, highlighting that the current one-year average value of MVRV is close to 86%.
The researchers said that the MVRV “remains above its yearly baseline, suggesting that the macro uptrend remains intact.”
While talking about short-term holders (STH), Glassnode researchers said that the number of STH sending BTC to exchanges has dropped considerably over the last few months. Currently, they are sending 17.4k BTC/day to exchanges, which is significantly lower than the peak of +55k BTC/day recorded when Bitcoin hit an all-time high of $73,000 in March.
Bitcoin Price Action Remains Shaky
The price trajectory of Bitcoin has remained shaky since it printed its new ATH in March. The trillion-dollar asset has failed to retain prices above the $70,000 price level, and according to the data from CoinMarketCap, BTC is down 3.05% in the last seven days and 2.30% in the last 30 days, which means that Bitcoin is currently experiencing sideways movement.
Bitcoin is trading at a price of $65,309 at the time of writing, with a 5.53% decline in trading volume that currently stands at $34 billion. The market capitalization of BTC is $1.2 trillion, and the digital asset is 11.5% down from its all-time high of $73,000.
As pointed out by crypto analyst “Ansem” in a post on X, Bitcoin is expected to show sideways movement until the end of Q3/Q4, and the analyst is not a believer in the theory that the market has already topped. He said that BTC will remain in the range of $58k–60k for quite some time.