The Current State of Bitcoin Profitability
About 83.6% or 16.36 million BTC of Bitcoin’s circulating supply are currently held in profit, reflecting levels last seen in the past two years. This marks a historic milestone, surpassing the all-time mean value of 74%, according to Glassnode’s ‘Week on the Chain’ report.
Bitcoin Accumulation Trends
Despite Bitcoin’s rally to $37,900 on November 16 and subsequent 4% retreat, greater accumulation patterns have emerged. The recent surge reflects stronger accumulation compared to past rallies in late January and late March, accompanied by a market performance boost and growing optimism regarding a spot BTC ETF. This growth has seen a 40% increase from $26,800 in mid-October to the recent high.
Evolving Market Phase and Long-term Holder Spending
The crypto market has transitioned from a bear to bull phase in the last ten months, with the October rally marking a sustained break above average levels and entering an “equilibrium phase.” This phase typically precedes a “euphoric” bull market rally, indicating positive signs for the market’s future trajectory.
Market Reaction to Binance News
Despite news of the CEO of Binance stepping down after receiving a substantial fine from the US Justice Department, the market has demonstrated resilience and overall sentiment. The total market capitalization experienced only a 3% decline over 24 hours, with $60 billion exiting the space. Recovery was already evident during the Wednesday morning Asian trading session, with the total cap reverting to $1.43 trillion, showing minimal impact from the news.
Hot Take
The gradual growth in Bitcoin’s profitability and market resilience amidst significant developments reflect underlying strength and optimism, paving the way for a potential bullish market trajectory. As Bitcoin enters an equilibrium phase and long-term investor confidence increases, the market appears to be evolving positively, despite recent challenges from prominent figures and regulatory actions. This signals a noteworthy momentum shift and heightened market confidence, depicting a bullish outlook for the future.
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