Despite months of sideways BTC price action, Bitcoin remains “largely profitable,” according to new research.
In the latest edition of its weekly newsletter, “The Week On-Chain,” published on June 18, analytics firm Glassnode dispelled myths about investors’ unrealized losses.
Bitcoin may be trading within a narrow corridor, but the majority of hodlers are not seeing their returns on investment evaporate.
Glassnode summarized current BTC price behavior as “establishing equilibrium,” highlighting multiple on-chain metrics that show Bitcoin is in a period of consolidation rather than capitulation.
“Sideways price movement tends to manifest as investor boredom and apathy, which appears to be the dominant response across all Bitcoin markets,” the report stated.
“BTC prices are consolidating within a well-established trade range.
“Investors remain in a generally favorable position, with over 87% of the circulating supply held in profit, with a cost basis below the spot price.”
Using the market value to realized value (MVRV) metric, researchers showed that, on aggregate, a given amount of BTC is still up by more than two times, or 120%, versus its purchase price in United States dollar terms. The one-year average value of MVRV is currently 86%.
“The MVRV Ratio remains above its yearly baseline, suggesting that the macro uptrend remains intact,” the accompanying commentary added.
The newsletter’s mood contrasts with some of the more panicked reactions to this week’s BTC price drop.
As Cointelegraph continues to report, traders are wary of support trendlines disintegrating and multimonth lows reappearing as a result.
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One key level now on the radar is the aggregate purchase price for Bitcoin’s speculative investor base, known as short-term holders (STHs).
According to the latest data from statistics resource LookIntoBitcoin, the STH cost basis is $64,000.
Despite seeing unrealized gains fading, STH entities are not preparing for a mass sell-off at current prices.
Glassnode notes, “At present, Short-Term Holders are sending around +17.4k BTC/day to exchanges,” which is significantly lower than the peak of +55k BTC/day recorded when the market hit the $73k ATH in March, where speculation levels were excessive.
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