Markets
More than 90% of Bitcoin supply remains profitable despite market volatility
Onchain Highlights
DEFINITION: The percentage of network entities currently making a profit is based on the amount of Bitcoin purchased at less than the current price. The “purchase price” is defined as the price at which the coins were transferred to addresses controlled by the entity.
Current Bitcoin market trends show a nuanced interplay between price fluctuations and the profitability of entities holding the asset.
Recent data from Glassnode reveals that a substantial portion of Bitcoin holders remain profitable despite recent volatility – with over 90% of the supply being profitable from the month of May.
This trend indicates that holders are maintaining their positions despite market fluctuations, reflecting a resilient support level for the flagship digital asset.
Additionally, Bitcoin price movements in 2024 are reminiscent of the volatile periods seen in previous years, especially in 2017. The asset has seen several significant declines and rises, contributing to an overall roller coaster pattern in market behavior.
This volatility highlights the speculative nature of the market and highlights the impact of external factors, such as regulatory developments and macroeconomic conditions, on the valuation of Bitcoin.
Glassnode data also indicates that the Bitcoin market is experiencing support levels that boost holder confidence, even if the asset is experiencing typical difficulties. cyclical corrections.
Bitcoin price consolidation around key support levels and sustained profitability from a majority of holders suggests a strong underlying market structure that could mitigate extreme downturns and provide stability going forward.