Bitcoin Price Soars Past $47,000 as Fundamental Metrics Show Strength
The price of Bitcoin has surged past $47,000 for the first time since last month, indicating strength across the board. This surge comes after the launch of several Bitcoin spot ETFs last month, and analysts say there are fundamental metrics supporting these gains.
Realized Cap Reflects On-Chain Capital Inflows
Blockchain analysts have pointed to Bitcoin’s “Realized Cap” as evidence of on-chain capital inflows. The Realized Cap is a measure of Bitcoin’s market cap based on the price at which all coins were last moved. It has increased by $50 billion since October, according to Glassnode analyst James Check.
Hash Rate Continues to Climb
The network’s hash rate, which measures computational power used to mine Bitcoin, continues to rise. It is currently at 572 Exahash per second, equivalent to every human on Earth computing 71.5 billion guesses to mine a Bitcoin block every second.
Economic Throughput and MVRV Ratio
Bitcoin’s economic throughput has also increased, with $7.1 billion settled per day in transactions. Additionally, the average unit of BTC is currently 100% in profit based on the market-value-to-realized-value (MVRV) ratio. The entire network sits on a profit of $448 billion in USD terms.
Increase in Shrimp Holders and Addresses with Significant BTC Holdings
There has been an increase in “Shrimp” holders, entities that own less than 1 BTC, with over 1.37 million BTC held by them. Furthermore, over 2.8 million Bitcoin addresses now own more than $10,000 USD worth of BTC.
Inflows and Outflows from Exchanges
Bitcoin’s inflows and outflows from exchanges have surged to $3 billion per day, indicating increased short-term interest in the asset. Since the launch of U.S. Bitcoin ETFs, they have absorbed over $2.2 billion of net inflows, including $400 million on Thursday alone.
Hot Take: Bitcoin Strengthens Across Fundamental Metrics
As the price of Bitcoin surges past $47,000, fundamental metrics show strength across the board. The Realized Cap reflects on-chain capital inflows into Bitcoin, while the hash rate continues to climb. Additionally, economic throughput and the MVRV ratio indicate profitability in BTC holdings. The increase in “Shrimp” holders and addresses with significant BTC holdings demonstrates wider participation in the market. Finally, inflows and outflows from exchanges suggest increased short-term interest in Bitcoin. Overall, these metrics support the positive outlook for Bitcoin’s future.
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