BTC’s Recent Performance
Since February this year, Bitcoin has made a strong comeback, surging by 60% from $23,000 to its current value. Experts also believe its recent performance has been historic and is primarily due to institutional interest.
Nevertheless, recent developments have raised speculations about the possibility of another bullish trend for the flagship digital token. Bitcoin’s current price spike is not solely due to institutional interest.
Data from on-chain platforms and investors reveal intriguing trends reminiscent of the 2021 bull run. For example, since the start of 2023, the number of active Bitcoin addresses has increased by 30%.
This shows that more people are using BTC to conduct transactions. Furthermore, the number of Bitcoin whales (holders with over 1,000 BTC) has jumped by 4% since the start of the year. It indicates that large investors are amassing Bitcoin.
Is BTC Set For Another Bullish Rally?
Furthermore, the crypto data aggregating platform, Glassnode, has released its latest report on Bitcoin accumulation across all wallet sizes. The report, which tracked BTC’s performance from October 2023, revealed that the driving forces behind this shift are Bitcoin’s market performance and rising hopes for a potential spot BTC exchange-traded fund (ETF) approval.
Also read:As a result, Bitcoin’s profit percentage supply has risen to 83% of the total circulating supply. This is historically significant because it exceeds the all-time mean value of 74%.
The rising investor confidence in BTC’s market performance and the potential spot BTC ETF has resulted in a significant increase in the percentage of supply in profit. This indicates that investors are bullish on Bitcoin’s future and are willing to hold their investments for the long term.
The report also highlighted the importance of profit as a percentage of supply, stating that when this percentage exceeds the all-time mean value of 74%, the market enters the ‘Euphoric phase’ of a bull market.
Bitcoin Holder’s Anticipation
According to Glassnode, Bitcoin investors have consistently accumulated this crypto asset because they believe in its long-term value. Therefore, it is no surprise that long-term holders are currently at an all-time high while short-term holders are at an all-time low.
However, the report indicated that unrealized profit percentages have yet to reach a statistically significant level corresponding to a bull market’s climax. Historically, average holders enjoy unrealized profits of more than 60% during the Euphoric phase, but the percentage currently stands at 49%.
The Bitcoin market has continued to depict volatility with price movement influenced by factors like trading volume and external events such as equity markets, the Fed’s actions, and the US Fed chair’s comments. Meanwhile, multiple indicators suggest that the leading digital asset faces resistance near $40K.
Per data from CoinGecko, Bitcoin currently trades at $37,029, with a 1.3% decrease in the last 24 hours.
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