The past week was a definite rollercoaster ride for Bitcoin (BTC), as it set a new record high of over $109,000, coinciding with billionaire Republican Donald Trump taking office as the 46th US President. Although the foremost cryptocurrency has since taken a downturn, sliding below the $105,000 mark, present indicators suggest that the market retains a bullish structure, evidenced by significant profitability among Bitcoin holders, which reduces the likelihood of bearish sentiment taking root.
Profitability among Bitcoin Holders: A 70% Upsurge for Long-Term Investors
The profitability of holders of a particular asset, gauged according to their realized price or average purchase cost, serves as a critical yardstick for assessing investor sentiment. CryptoQuant analyst ‘Crazzyblockk’ recently shared insights on Bitcoin holder profitability across three key segments in a Quicktake article. However, this data might not be a precursor to a bearish market, as long as short-term and new investors continue to register significant profits.
According to the CryptoQuant data, Bitcoin holders who’ve held onto their assets for more than six months are currently enjoying an average profit margin of 70%. In contrast, short-term investors (those holding for less than six months) have reported moderate profits of around 14.5%, indicative of their capability to adeptly navigate the recent market volatilities. Additionally, newcomers to the Bitcoin market, or those who’ve held Bitcoin for less than a month, have a modest profit margin of 4.7%.
The continued profitability of these Bitcoin investor tiers is crucial, given the ongoing profit-taking by long-term Bitcoin holders. For instance, renowned crypto analyst Ali Martinez disclosed that long-term Bitcoin holders offloaded a substantial 75,000 BTC in the previous week. These quantities of Bitcoin are being absorbed by short-term investors and new market entrants, effectively mitigating any potential market sell-off impacts. Thus, if these investor categories begin incurring losses, it could set off substantial bearish pressure on Bitcoin.
Overview of Bitcoin Price
As of the latest reports, Bitcoin is being traded at $104,737, marking a slight 0.09% increase within the day. Comparing weekly performance, there is a decrease of 0.46%. However, a positive surge of 8.71% over the past month is indicative of the market’s bullish structure.
With the ascension of Donald Trump to the presidency, the expectations tied to Bitcoin are likely to surge, given the new President’s crypto-friendly stance. So far, President Trump’s tenure has shown positive indications, particularly with the SEC revoking the contentious SAB 121 and an executive order looking into the establishment of a national digital asset reserve.
Returns from Bitcoin show no cause for worry as both long-term and short-term investors are gaining significant profits. Investors and potential investors need to keep a close eye on the market trends. Using top-tier cryptocurrency applications like Finances Zippy can provide valuable insights into price predictions and broader market trends.
Q: How have Bitcoin holders performed recently?
A: According to data from CryptoQuant, Bitcoin holders have seen substantial profitability. Long-term holders, those who have held Bitcoin for over six months, have enjoyed an average profit margin of 70%. Short-term holders, or those who have held Bitcoin for less than six months, have reported a profit of around 14.5%. Even new investors, those who have held Bitcoin for less than a month, have seen a modest profit of 4.7%.
Q: How is Donald Trump’s presidency expected to impact Bitcoin?
A: Given President Trump’s known pro-crypto stance, his presidency is expected to be favourable for Bitcoin. His administration has already shown promising signs with the revocation of the controversial SAB 121 by the SEC and an executive order exploring the establishment of a national digital asset reserve.
Q: How can one keep track of Bitcoin price predictions and market trends?
A: Using leading cryptocurrency applications like Finances Zippy can provide considerable insights into price predictions, market trends, and other vital aspects of the cryptocurrency market.
