Despite months of BTC price volatility, Bitcoin is still “largely profitable,” a new study finds.
In the latest edition of its weekly newsletter The Week On-Chain, published June 18, analytics firm Glassnode dispelled the myth of investors’ unrealized losses.
BTC price analysis shows “investor boredom and apathy.”
Bitcoin (BTC) may be traded within tight corridors, but the majority of holders are not seeing their investment returns evaporate as a result.
Glassnode summarized the current BTC price action as “establishing balance,” pointing to several on-chain indicators that show Bitcoin in a period of consolidation rather than capitulation.
“Sideways price movements tend to reflect investor boredom and apathy, which appears to be the dominant reaction across all Bitcoin markets,” he wrote.
“BTC price is consolidating within a firm trading range. “Investors are generally well-positioned, with over 87% of circulating supply retained at profit and cost basis below spot prices.”
Using the Realized Value (MVRV) metric, researchers found that overall, a given amount of BTC has appreciated by more than 2x, or more than 120%, compared to its purchase price in USD. The current average one-year value of MVRV is 86%.
“MVRV rates remain above the annual baseline, suggesting that the macro upward trend remains intact,” the commentary added.
Bitcoin Speculators Refuse to Surrender
The tone of the newsletter contrasts with the more panicked reaction to the BTC price drop this week.
Related: If These 3 Indicators Show Up, Bitcoin’s ‘Banana Zone’ Is Next.
As Cointelegraph continues to report, traders are wary of a breakdown of the support trend line and a consequent resurgence of multi-month lows.
Among the most important boundaries currently on the radar is the aggregate purchase price for Bitcoin’s speculative investor base, the so-called short-term holders (STHs).
According to the latest data from statistical resource LookIntoBitcoin, the STH cost basis is $64,000.
Despite wiping out unrealized profits, STH Corporation itself is not preparing for a large sell-off at current prices, Glassnode says.
“Short holders are currently sending +17.4k BTC to exchanges per day,” he calculated.
“However, this is significantly lower than the peak of +55,000 BTC per day recorded in March when the market reached $73,000 ATH when speculation levels became excessive.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.