Bitcoin has seen an incredible 24 hours since the digital asset’s price added more than $1,500. This price increase has had a number of positive effects, including profitability for investors holding the cryptocurrency. While less than half of all investors had made a profit when BTC fell below $19,000, the recent recovery has pushed the percentage up again.
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According to data from IntoTheBlock, half of all bitcoin investors are currently making profits at current prices. The 7.7% rise in the price of the digital asset over the past day had caused more investors to see gains on their coins again.
Currently, the percentage of investors who are in the money is at a perfect 50%. Even more interesting is the percentage of investors currently in neutral territory. At 11%, the data shows that a large number of investors had actually bought their BTC in the area of $20,000. As for those at a loss, it currently sits at 39% of all investors.
The composition of holders by time holdings also points to a pattern of long-term holdings leading to higher profits. In total, 63% have held their coins for more than 1 year while 32% have held their coins for between 1-12 months.
Now, looking at the market and the prices at which the cryptocurrency traded over the past year, it is clear that those who bought their coins in the past year are most likely to lose out, while those who bought over a longer period of time are most likely to lose out. more are likely to be in profit. Reiterating the importance of a long-term position in the crypto market.
BTC recovers close to $21,000 | Source: BTCUSD on TradingView.com
But are investors optimistic about Bitcoin?
With the price drop from $69,000 to the current level, there is some panic in the market. This is further escalated by the fact that many investors are going to sell their coins to avoid taking more losses.
An alarming development is the amount of BTC supply currently active in the market. During the bull market, the amount of active supply remained low until the downtrend started. This has led to an active supply of nearly 1 million BTC in the market, a 22-month high.
The last time such a high supply was active was in October 2020. Interestingly, however, this was right at the beginning of the bull market. So it’s possible that such a high active supply could influence the current recovery and push the price up. This would actually mean that the bottom of the market was reached when it touched $17,600. Added to the accumulation trend that builds it up slowly, it’s a recipe for higher prices.
Featured image from NDTV.com, chart from TradingView.com
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