Bitcoin (BTC) price has risen more than 23% over the past two weeks as demand pressures increase, hitting a two-month high of $68,583 on July 22. During this uptrend, BTC surpassed the short-term holder (STH) cost threshold, highlighting “the strength of the ongoing uptrend,” according to market intelligence firm Glassnode.
Glassnode wrote in their “Week On-chain” newsletter published on July 24 that the recent BTC price surge above $68,000 was “a welcome relief for short-term Bitcoin holders (STH).”
According to on-chain data providers, this group of investors is in a financially stressed situation after “over 90% of supply fell into deficit” following the July 5 low of $53,500.
“The rally has now bounced back above the STH cost base, returning 75% of the holding supply to unrealized profits. This can be seen in the STH-MVRV indicator, which has now recovered above the breakeven level of 1.0.”
The Bitcoin STH Cost Basis (or Realized Price) is an indicator of the average acquisition price of Bitcoin for investors who are considered short-term holders, defined as the movement of coins held for less than 155 days.
According to data from LookIntoBitcoin, BTC broke the $68,000 level on July 22, up from the STH realized price of $65,329 at the time.
Additionally, the recent recovery has pushed the MVRV of all STH groups above 1, showing how profitability has changed across buyer groups recently.
“Currently, all members of the short-term holder group have returned to positive profitability, which underscores the strength of the prevailing uptrend. This is likely to be positive for overall investor sentiment.”
“The MVRV ratio shows that the Bitcoin price has remained above the average cost basis of short-term holders,” declared Crazzyblockk, an anonymous analyst at CryptoQuant.
Crazzyblockk explains that the MVRV ratio is an important metric in Bitcoin analysis, and that yields above the STH cost basis are important for maintaining a bullish outlook and attracting new capital into the market.
“Historical #Bitcoin price cycles based on holder behavior logic highlight the importance of price stabilization and bullish market sentiment above the average cost basis of short-term investors.”
Related: BTC Price Set to Retest $72,000 as Bitcoin Prepares for $7 Billion Liquidation Showdown
Spot Bitcoin ETF Flows Turn Negative
On July 23, a 12-day streak of consecutive inflows was broken when a total of $77.92 million was lost from U.S.-based spot Bitcoin exchange-traded funds (ETFs).
According to data from SoSo Value, Bitwise’s ETF BIBT had the biggest outflow on July 23rd with a net outflow of $70.3 million, followed by 21Shares’ Bitcoin ETF ARKB with a net outflow of $52.3 million, and Grayscale’s ETF GBTC in third place with a net outflow of $27.3 million.
In contrast, BlackRock’s ETF IBIT was the only fund to record inflows of $71.9 million, while the other ETFs saw no inflows.
The 10 spot Bitcoin funds that began trading on January 11 had net inflows of $17.5 billion as of July 23, with assets under management exceeding $59.97 billion.
The massive inflows into spot Bitcoin ETFs over the past few weeks are the highest since May, when total net inflows exceeded $4 billion between May 13 and June 7.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.