With the Bitcoin prices pushing past $30,000 levels and gaining momentum there, the investors are in a comfortable position. Recent data suggests that the asset has been showing a positive performance on several metrics indicating positive investor sentiment.
In its weekly report titled “Stuck in the Middle,” Glassnode, an on-chain analytics firm, has analysed Bitcoin’s performance across several metrics. The firm says while inscriptions have cooled off significantly and Bitcoin network congestion is starting to clear. However monetary transfer volumes are increasing, now up +75% since the November lows.
Recently, Bitcoin active address momentum has started increasing again. It adds that while in the previous months some suggest declining figures, factually it was a result of of significant address re-use by inscription traders, and network activity was actually booming, with blocks being packed full.
This also stands relevant to data analysed by Todayq News which revealed that the new addresses touched one-month high and in large the figures are also the highest since April.
Simultaneously, with eventual pick up of prices, the asset has witnessed increasing transfers. Notably, the Bitcoin trading has lifted 75% off the FTX lows, now reaching $4.2 billion per day in total settlement.
Focusing on exchange inflows and outflows, we see that the Bitcoin network is entering a period of positive momentum. The monthly average of exchange flows is now firmly above the yearly values, a sign that has historically suggested growing adoption from a monetary asset standpoint.
Whilst several other on-chain activity metrics are cooling off, this one suggests a return back towards a dominance of Bitcoin monetary transfers.
Now, this tells us that the recovery of the Bitcoin market in 2023 has been remarkably robust, both from a price performance as well as from a network utilisation standpoint. Now, looking at the Bitcoin URPD charts, we understand that just 25% of the supply was acquired at prices above $30,000, held by buyers from the 2021-22 cycle.
The URPD chart stands for UTXO Realized Price Distribution showing the realized price of all UTXOs on any given day. UTXO is an unspent transaction output (UTXO) is the technical term for the amount of digital currency that remains after a cryptocurrency transaction.
Looking at the long-term and short-term heuristics, Glassnode analysts conclude that:
- A significant volume of long-term holders supply was acquired between $15,000 and $25,000 (thus in profit), and remains unspent, despite prices reaching $31,000.
- Almost all coins with an acquisition price above $30,000 are held by long-term holders. These investors are the survivors of the 2021-22 bear market, and are either battle hardened hodlers, or likely to create resistance if the market goes higher.
- The price range between $20,000 and $30,000 has seen expanding accumulation since February, despite the increasing regulatory pressure in the US as reported by Todayq News.
Overall, this supply distribution is quite ‘bottom heavy’ suggesting a relatively firm ‘foundation’ of investor holdings exists below $30,000. This tells us that largely Bitcoin short term holders are largely in profits considering the fact that in losses are mostly under the ownership of long-term holders.
Additionally, Glassnode writes that the volume of supply which jumped from ‘in-loss’ to ‘in-profit’ status was around 2.47 million Bitcoin, equivalent to 12.7% of the total supply. Conversely, the supply held ‘in-loss’ has declined to just 4.79 million Bitcoin, reaching similar levels seen in July 2021 ($30,000), July 2020 ($9,200), April 2016 ($6,500), and March 2016 ($425).
Concluding the report, Glassnode writes that while Bitcoin has been holding strong grounds at the $30,000 levels, several metrics are yielding good results with levels reaching equilibrium positions primarily the reason which inspired the title “Stuck in Between.”
The comfortable positions are also synonymous with the ‘re-accumulation period’ seen in past cycles, as the investors look toward the asset amid the increasing proportion of profits. Additionally, the price performance has also been strong about 84% up on year-to-date basis.
Simultaneously, the increasing monetary volumes indicating a larger positive outlook associated with growing liquidity and adoption amid the relatively stable market. As of writing, Bitcoin is trading at $30,621.20, about a 0.66% surge over the past day and a 2.4% increase over the past 5 days.