• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Belgium to introduce new crypto ad regulation

2023-03-21

Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

2023-03-20

Taiwan orders financial watchdog to take over crypto regulations

2023-03-20
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01

    Yuga Labs Launches A New NFT Collection on Bitcoin Network

    2023-02-28
  • Metaverse

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20

    A Guide to Virtual Land Staking in the Metaverse

    2023-03-20

    Nissan Doubles Down on Web3 Innovation

    2023-03-13

    As Fashion Moves into the Metaverse, What Other Industries Could Be Next

    2023-03-13

    South Korea Launches New ‘Metaverse Fund’

    2023-03-13
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Belgium to introduce new crypto ad regulation

    2023-03-21

    Taiwan orders financial watchdog to take over crypto regulations

    2023-03-20

    Florida Governor Moves to Ban CBDCs, Calls for Coalition of States to Follow Suit

    2023-03-20

    Florida Governor Ron DeSantis seeks to ban US CBDC in state

    2023-03-20

    Cardano Creator Charles Hoskinson Slams Politicians for Blaming US Banking Crisis on Crypto

    2023-03-20
  • Learn

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17

    How to Short Sell Bitcoin

    2023-03-17

    Why Decentralized Exchanges Are On Rise? Can INNODEX Surpass Binance and Uniswap?

    2023-03-15

    What is it & List of Top defi 2.0 Projects

    2023-03-13

    Centralized (CEX) vs Decentralized (DEX) Cryptocurrency Exchanges

    2023-03-06
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»59% of Bitcoin Holders Are Sitting On Profits
Bitcoin

59% of Bitcoin Holders Are Sitting On Profits

2023-01-19No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

59% of Bitcoin holders are profitable as the coin trades above the current Realized Price, which is the cost basis of the average BTC holder, IntoTheblock data on January 19, shows.

Parallel on-chain streams show that the realized price of Bitcoin is around $19,700. Comparing this number with the spot BTC price presently at over $20,700, it means 59% of coin holders are sitting on profits, a net positive for the ecosystem.

This development is a shot in the arm for HODLers, considering the sharp contraction of prices over the past few months. Then BTC plunged from around $69,000 in November 2021 to slightly over $15,000 in 2022.

Bitcoin Price chart Chart: TradingView.com
Bitcoin Price Chart Chart| Source: BTCUSDT on TradingView.com

On-chain data are crunched in real-time, and analysts interpret them to gauge the state of the market. Their interpretation, in turn, could massively influence sentiment and determine how retail traders act based on price action.

Related Reading: Bitcoin Price: Investors Predict 12% Decline For BTC In Next Two Weeks

As BTC prices react from $21,600 posted earlier this week, on-chain statistics show more than half of BTC holders are in green. Only 38% of market participants are out of the money.

Bitcoin holders in the money
Bitcoin holders in the money: Source: IntoTheblock

Most Bitcoin Holders Have Been In The Red

Even as BTC appears to recover, there must be a comprehensive breakout to solidify and revive demand. Based on the recent Bitcoin price action, most holders appear to be in the green after an extended period of losses.

Realized Price
Bitcoin Realized Price: Source: Cryptoquant.com

Trackers show that holders have been in losing territory since mid-August 2022.  The situation only worsened in subsequent months when fear, uncertainty, and doubt (FUD) swept across the crypto and BTC markets, forcing the coin even lower. This draw-down was because of the unexpected collapse of FTX, a cryptocurrency exchange, and Alameda Research, a trading firm closely associated with the Sam Bankman-Fried exchange.

By early November, BTC had dropped by over 65% from 2021 peaks, highlighting the level of apprehension across the board, pushing the Realized Price even lower. 

Realized Versus Market Price

Realized Price is a metric that measures the price of all BTC currently in supply at the rate they were bought. The value obtained is then divided by the BTC in the circulating supply.

The result gives an “average cost basis” which is then used to describe the Realized Price. It is different from the spot market price because the latter indicates Bitcoin’s current price based on real-time supply and demand. Like any other asset, BTC prices are massively determined by market forces, with the “hype” element, describing sentiment, another factor to consider.

Related Reading: Overbought Or Ready To Rip? Bitcoin Daily RSI Reaches Explosive Levels

That more than half of Bitcoin holders are profitable at spot rates is important. Realized Price helps judge the overall economic state of the Bitcoin market. How this metric fluctuates versus the market price tells whether BTC holders are buoyant or distressed. In technical analysis, the Realized Price can be used to mark resistance or support levels.

Technically, whenever the Realized Price exceeds the Market Price, it indicates some BTC holders are in profit. If it drops below Market Price, then on aggregate, a section of market participants is in red. Profitability depends on the price level they bought.

Featured image from Flickr, Charts from TradingView.com

Source link

Bitcoin holders profits Sitting
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

How to Short Sell Bitcoin

2023-03-17

Bitcoin Bursts to $22,000 As Biden Administration Tries to Stop Contagion in U.S. Financial System

2023-03-12

Judges Will Likely Rule in Favor of Grayscale in Bitcoin Spot ETF Battle With SEC, Says Bloomberg Expert – Here’s Why

2023-03-12

SEC denies VanEck Bitcoin spot ETF for a third time; commissioners dissent

2023-03-11
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Here’s why Zcash (ZEC) might be gearing up for a potentially explosive breakout

2022-06-05

Despite Market Crash, Top Analyst Says There’s Still No Better Risk-To-Reward Asset Than Bitcoin (BTC)

2022-06-28

Bitcoin Price Retakes $21,000, May Keep Rising Due To This

2022-11-04

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Belgium to introduce new crypto ad regulation

2023-03-21

Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

2023-03-20

Taiwan orders financial watchdog to take over crypto regulations

2023-03-20
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$28,154.00-0.09%
  • ethereumEthereum(ETH)$1,814.522.02%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.010.40%
  • binancecoinBNB(BNB)$338.21-0.44%
  • usd-coinUSD Coin(USDC)$1.00-0.10%
  • rippleXRP(XRP)$0.42509910.85%
  • cardanoCardano(ADA)$0.3512042.40%
  • Lido Staked EtherLido Staked Ether(STETH)$1,816.592.33%
  • matic-networkPolygon(MATIC)$1.150.25%