Glassnode data shows that with this rise in market prices, the profitability ratio of Bitcoins in circulation has increased sharply from about 75% before to the current 95%.
(Previous summary: QCP Capital: Bitcoin easily exceeded 69,000 in March! Spot ETFs continued to attract gold, with an average daily net inflow of 13,000 BTC)
(Background supplement: Bitcoin spot ETF trading volume is approaching CEX! CryptoQuant: The impact of large institutions on BTC will be more obvious)
Continuing net inflows into Bitcoin spot ETFs have boosted Bitcoin’s price trend, and another potential catalyst, the “BTC halving narrative,” is officially two months away. At 11 o’clock in the evening yesterday (17th), the price of Bitcoin fell below the US$51,000 level, rebounded to US$51,369 as of writing, and currently continues to fluctuate in the range of US$50,000 to US$52,000.
Bitcoin price continues to fluctuate between $50,000 and $52,000
Glassnode: More than 95% of BTC is profitable
With this rise in market prices, according to Glassnode data, the profitability ratio of Bitcoins in circulation has increased sharply from about 75% before to the current 95%. This jump reflects the strong performance of Bitcoin prices. If calculated specifically from the last market low, which was around $18,000, Bitcoin’s profitability ratio has increased by 50% from the original 45%.
BTC Profit Ratio｜Source: Glassnode
On the other hand, according to INTO THE BLOCK data, since this year,Whale Bitcoin holders show strong growth in BTC balances. INTO THE BLOCK expects this trend to continue, as exposure to Bitcoin is now more convenient than ever for institutions with a Bitcoin spot ETF.
The whale’s Bitcoin balance continues to increase｜Source: Intotheblock
Analyst: Continued depreciation of the US dollar can push up BTC
Cryptocurrency analyst Marcel Pechman recently wrote that according to market data, investors expect the future earnings growth of S&P 500 companies to reach 10.9%, significantly higher than the 3.8% in 2023. This suggests that investors may be less interested in finding alternative assets such as Bitcoin in the current economic environment.
Pechman analysis shows that for Bitcoin to rise from the current $52,000 to its all-time high of $70,000, it would need to rise an additional 34.5%, which means that its market value will increase by approximately $350 billion. Still, as long as the dollar continues to depreciate, Bitcoin rising above $70,000 is still possible.
However, Pechman mentioned that this significant price increase is unlikely to occur before the Bitcoin block reward halving in April. Halvings typically have a significant impact on Bitcoin prices, but until then, the market may not see large price movements.
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2024-02-18 03:23:58
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