Bitcoin's Recent Surge Returns Long-term Holders to Profit
Summary:
Bitcoin’s price surge above its previous record has driven all remaining long-term holders back into profit. This group mainly consists of Bitcoin buyers who invested during the 2021 bull cycle. Currently, the unrealized losses are mainly borne by short-term holders who bought Bitcoin ahead of its all-time high in March. This current price upswing is igniting renewed market speculation. Despite this, Bitcoin is still struggling to surpass its all-time high potentially due to regulatory uncertainty and macroeconomic concerns.
Bitcoin's surge above its record high from November 2021 has now pushed the remaining long-term holders who had unrealized losses back into profitability. As of June 4, when the price of Bitcoin was around $68,000, only a minuscule 0.03% of long-term holders (those who have retained Bitcoin for over 155 days) remained in deficit, reveals a report from the cryptocurrency analysis company Glassnode. This small group largely consisted of those who invested in Bitcoin during the 2021 bull cycle, when it rocketed to its earlier peak of $69,000 in November 2021. Even at $68,000, the percentage of long-term holders in loss was practically negligible, corresponding to around 4,900 Bitcoin bought at a higher price than current rates. If Bitcoin manages to stay beyond $69,000 for the coming months, all longstanding Bitcoin investors will be profitable. However, this could change on August 13, when the long-term holder period will include March 11, when Bitcoin hit $72,110. As per CoinMarketCap, Bitcoin is currently valued at $71,080, showing a 10.66% increase over the past month. According to Glassnode, the bulk of the unrealized losses are borne by short-term holders, primarily those who made purchases in March in anticipation of Bitcoin's all-time high of $73,679 on March 13. Glassnode states that the recent price surge seems to be stirring fresh market expectation. Bitcoin, despite its upward trend, is yet to surpass its all-time high and recently fell short of the $72,000 mark, dropping back to $71,000. This is possibly due to unresolved regulatory concerns and apprehensions about negative macroeconomic events. Expected on June 7 is the US employment report, with the Consumer Price Index following on June 11. If these reports show lower results, they could potentially drive Bitcoin to new all-time highs, says Marcus Thielen, the head of research at 10x Research. It's vital to remember that this article does not provide investment advice or recommendations. All trading and investment moves come with their risks, and readers are advised to perform their research before making decisions.
Published At
6/6/2024 4:55:36 AM
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