Bitrabo Editorial
Bitcoin remains strong, maintaining levels above $60,000. Despite a sluggish uptrend and fading momentum, profitability indicators suggest that things are looking up.
Bitcoin Addresses in Profit
As of July 22, Bitcoin is steady even though it is approximately 8% down from its peak of around $74,000. Data from IntoTheBlock indicates that a significant 93% of all Bitcoin addresses are currently profitable at current market prices.
This marks a substantial recovery, particularly following the significant market drop in June and early July 2024, where prices plummeted to as low as $53,500 before bouncing back.
Presently, only a minority of Bitcoin holders are facing losses. These holders likely bought in around $72,000 or at the all-time high, anticipating a surge to $100,000.
The recent recovery to over $67,000 has restored confidence among Bitcoin holders, especially short-term investors who purchased Bitcoin within the last 155 days. As prices exceeded $63,000, these holders began to see profits, easing the selling pressure.
Miners Increasing Bitcoin Holdings as Uptrend is Confirmed
Interestingly, as Bitcoin’s value climbs, miners are opting to hold rather than sell their Bitcoin.
Throughout July, data from IntoTheBlock showed that miners have been actively accumulating Bitcoin. Major mining farms such as Mara Digital and Riot Blockchain have amassed over 4,500 BTC in the last three weeks alone.
This optimistic outlook and anticipation of a further increase in Bitcoin prices have also positively impacted the stock prices of these mining companies. Last week, data revealed that stocks of MARA and RIOT surged by more than 30%, with investors expressing support for these public mining companies and indicating plans for expansion in the near future.
Moreover, there has been a noticeable increase in accumulation by entities holding at least 1,000 BTC, reaching a two-year high by July 19.
As a result of these developments, the Bitcoin Market Value to Realized Value (MVRV) ratio, used to gauge profitability, is on the rise. An analyst highlights that as of July 22, the MVRV has bounced off its one-year moving average, affirming the validity of the Bitcoin uptrend.