Bitcoin’s Rally Puts Investors Back in Profit
A recent report from Glassnode reveals that Bitcoin’s surge to a new yearly high has brought the majority of investors’ holdings into profit. After the rally, 4.7 million BTC, equivalent to 24% of Bitcoin’s circulating supply, turned green. This positive development follows a series of short liquidations that cleared 35,000 BTC worth of open interest from the perpetual futures market on October 23.
Chaos in the Derivatives Market
Glassnode compares this event to a short squeeze in January that propelled Bitcoin past $20,000. According to data from K33 research, offshore exchanges experienced a decrease of 26,735 BTC in perpetual open interest, while CME-regulated venues saw an increase of 4,380 BTC.
The options market has also seen significant growth, with call options registering an 80% rise and open interest reaching $4.3 billion. This surge in call options suggests a bullish market sentiment.
Passing Key Price Thresholds
Glassnode notes that Bitcoin’s rally has surpassed two important “cost-basis” levels. The True Market Mean Price estimate stands at $29,780, and the Short Term-Holder cost basis was overcome at $28,000. These milestones indicate that the average investor is now in profit by around 20%. However, long-term investors remain unaffected, with their aggregate holdings reaching a new all-time high of 14.899 million BTC.
About 29.6% of this group currently holds their Bitcoin at a loss, suggesting they may be more resilient compared to previous cycles. Glassnode emphasizes that future weeks will be crucial to monitor as the market crosses key psychological levels.
Hot Take: Bitcoin’s Rally Brings Majority of Investors into Profit
Bitcoin’s recent surge to a new yearly high has resulted in a significant number of investors’ holdings turning green. This positive development follows a series of short liquidations in the derivatives market. The options market has also experienced substantial growth, indicating bullish sentiment.
Bitcoin’s rally has surpassed key price thresholds, putting the average investor in profit by 20%. However, long-term investors remain unaffected and continue to hold their positions. The market’s performance in the coming weeks will be crucial as it navigates important psychological levels.
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