87% of Bitcoin holders in profit despite BTC dip to below $64k

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As a researcher with experience in the cryptocurrency market, I’ve seen my fair share of price volatility in Bitcoin. Despite the recent struggles of Bitcoin price to break higher after being rejected at $70k, it’s important to note that the vast majority of BTC holders are still profitable.

As a financial analyst, I’ve observed that although Bitcoin‘s price has failed to surpass its recent rejection at the $70,000 level, an impressive proportion of Bitcoin investors continue to enjoy profits.

MicroStrategy recently bought over 11,900 Bitcoins for approximately $786 million using funds from a convertible notes sale. However, Bitcoin’s price briefly climbing above $65,000 has since dropped back down to around $64,000.

In contrast, information from IntoTheBlock indicates that approximately 87% of Bitcoin owners continue to make a profit. The majority of these investors purchased Bitcoin when the average price was lower than its current value.

As an analyst, I’ve reviewed the on-chain data and found that approximately 46.72 million Bitcoin addresses currently hold a profit due to their purchases being priced higher than the current market value. Conversely, around 5.68 million addresses, representing almost 11% of the total, are facing losses as they acquired BTC when prices were higher. A mere 2.67%, or about 1.44 million addresses, represent holders whose average buy-in price aligns with the current market value, neither incurring a profit nor a loss.

Bitcoin price struggling for upside

Bitcoin reached a new peak of over $73,000 in March, but it has struggled recently. The cryptocurrency dipped as low as $56,000 in early May, then bounced back to surpass $71,000 – only to be met with resistance at this price level on May 21 and again in early June.

On Friday, the price of Bitcoin dipped by over 3%, falling beneath the $64,000 mark. Similarly, Ethereum experienced a decline of more than 3%, dropping below the $3,500 threshold.

The price of Bitcoin is approximately $63,700 at present, while Ethereum is being traded around $3,503.Bitcoin, the leading cryptocurrency, has experienced a 8% decrease over the past month, and Ethereum has seen a similar drop of 6%.These declines come amid a combination of factors that have put downward pressure on the market.

As a analyst, I’d interpret the current negative sentiment in the market and identify the $61,900 to $63,800 price range as a significant support zone for Bitcoin.

As a crypto investor, I’m observing that Bitcoin’s trajectory remains predominantly bearish at the moment, with the price hovering slightly above a significant demand area. It would be prudent for us to closely monitor the 61.9k to 63.8k range as potential support levels in the near term.

— IntoTheBlock (@intotheblock) June 21, 2024

BTC sell-off pressure: what’s the catalyst?

From my perspective as a researcher studying the Bitcoin market, there’s been a trend of net outflows for spot Bitcoin Exchange Traded Funds (ETFs). Simultaneously, miners have persisted in selling their bitcoins following the latest halving event. According to on-chain data that I’ve analyzed, miners have offloaded over 30,000 BTC throughout the month of June.

As a bitcoin investor, I’ve been closely following the analysis of Willy Woo, a renowned industry expert. In a recent comment posted on X last Friday, he expressed his belief that miner capitulation will continue to pose a significant downside risk for Bitcoin in the near term.

As a cryptocurrency analyst, I’d put it this way: “The question at hand is when does Bitcoin bounce back? My take is that it occurs when less profitable miners exit the market, leading to a recovery in hash rate.”

From my perspective as an analyst, the prolonged miner capitulation observed in the current post-halving period may be explained by the recent surge in profits for miners, largely attributed to the adoption ofordinal inscriptions. In simpler terms, the increased profitability derived from these new technologies has made it more enticing for miners to hold onto their operations, despite the market’s volatility and downturn.

Over the past week, there has been heightened selling pressure resulting in a significant drop in Bitcoin’s price. This comes amidst rumors of potential large-scale sell-offs by the German government. In early 2021, German law enforcement seized approximately 50,000 Bitcoins worth around $2.1 billion at the time from an illegal film sharing website, “Movie2K.” Due to Bitcoin’s price surge, the value of these confiscated coins had escalated to over $3 billion.

Approximately $110 in Bitcoin from this seized Bitcoin address have been transferred to exchanges like Kraken and Bitstamp.

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2024-06-21 16:52