Bitcoin investors are benefiting from solid market performance, Glassnode said.
In its weekly report on the state of the crypto market, investment firm Glassnode highlighted Bitcoin’s current profitability, noting that the average investor in the leading cryptocurrency has an unrealized gain of 120%, with BTC trading near $65.000 per unit.
Glassnode analysts indicated that Bitcoin market profitability remains strong despite the apparent stagnation of prices. Over the past 10 days, the bitcoin price has been trading in a range between $64.000 and $66.000 per BTC. According to analysts, this has plunged cryptocurrency investors into “boredom and apathy,” but they remain in a generally favorable position.
87% of Bitcoin supply is in profit, says Glassnode
According to report, 87% of the bitcoins circulating in the market remained in gains this week. Therefore, despite the fact that the price of Bitcoin is immersed in a boring lateralization, the cryptocurrency is consolidating within a well-established trading range, Glassnode analysts indicated.
“Currently, the average coin has an unrealized gain of around +120%, typical of previous markets trading around the previous cycle ATH”, Glassnode said.
The investment firm also stressed that the macro bullish trend of the Bitcoin and cryptocurrency market remains intact, considering that the MVRV index remains above its annual baseline.
According to the analysis, this metric is consolidating between the 0,5 and 1 standard deviation range, which have historically aligned with long-term macroeconomic top formations. Glassnode highlighted that this deviation range highlights the statistically significant profit that the average Bitcoin investor is making, despite the current market conditions.
Bitcoin trading volume declines
On the other hand, despite the high percentage of unrealized profits, the low trading volume with BTC highlights the lack of interest of investors in speculation with this digital asset, the firm indicated.
Data from cryptocurrency price monitoring platform CoinMarketCap indicates that BTC’s daily trading volume is currently at $23.300 billion, down more than 16% from the previous day. According to Glassnode, this data indicates that despite healthy profitability, investors have a lower appetite for Bitcoin speculation.
Source: CoinMarketCap
Investor activity on centralized exchanges has also declined significantly. In March, when Bitcoin's price was breaking new all-time highs, daily Bitcoin inflows to CEXs averaged around 55 BTC. However, this figure has dropped significantly in the past week, and cryptocurrency holders are sending around 17 BTC per day to CEXs at present. Glassnode noted that Bitcoin's exit from its current lateralization would incentivize further investor action.
Current market scenario
The data analyzed by the firm suggests that a balance has been established between demand and supply of Bitcoin. Therefore, the current demand for the leading cryptocurrency has been sufficient to absorb the selling pressure in the market, although it has not been enough to drive a significant price movement.
On the other hand, the firm suggests that range and arbitrage traders are the ones benefiting the most from the current state of the Bitcoin market, while directional and trend traders are not seeing as many benefits.
At the time of writing this article, the bitcoin price It is trading at around $64.900 per BTC.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
Main image by Marco Verch
