Super-Majority of Bitcoin Holders Are Now Back in Profit + More News
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Bitcoin (BTC) has broken above the psychological $40,000 level, it appreciated over 140% year-to-date, it has more than doubled relative to gold, and it still dominates against the rest of the digital asset industry, according to on-chain analysis firm Glassnode.
Compared to previous cycles, the BTC return profile is “eerily similar” to the 2015-17 and 2018-22 cycles in terms of recovery duration and drawdown since the all-time high, it said, and added:
“With such strong performance, the super-majority of Bitcoin holders are now back in profit, with a small proportion of them realizing those gains.”
Several on-chain metrics suggest the recent rally is pushing the market out of a ‘transitional recovery zone.’ It now more closely resembles an ‘enthusiastic bull market.’
According to Mathieu Ziaei, Portfolio Manager and Risk Officer at Swiss regulated digital asset investment manager Criptonite Asset Management, after the Binance and US DOJ settlement, there is hype around the market’s belief that a spot BTC exchange-traded fund (ETF) would be approved in January 2024 and that the ETF will bring significant cash inflows to BTC – increasing prices across the crypto market.
Ziaei said in an email that,
“My personal opinion is that traders are going to front run the ETF with the current price action of Bitcoin. I think that around $48,000 should be the local top for bitcoin on the short term. It’s been a long time since the planets have been aligned this perfectly. With the ETF hype, end of the financial cycle and most of the risks have been eliminated, this leaves
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