Bitcoin is firm when writing, floating higher and above $60,000. Even as the uptrend appeared labored and momentum waning, there are signs that all is well, at least from the profitability angle.
93% Of Bitcoin Addresses Are In The Money
As of July 22, Bitcoin is stable and down roughly 8% from all-time highs of around $74,000. IntoTheBlock data showed that 93% of all addresses are in the green at spot rates.
If anything, it is a major recovery and a turnaround, especially after the major sell-off of June and early July 2024, when prices plunged to as low as $53,500 before bouncing off.
At the current valuation, a minority of BTC holders are in the red. These entities most likely bought at around $72,000 or all-time highs, expecting prices to roar to $100,000.
As it has turned out, Bitcoin dropped by as much as 21% from all-time highs to July 2024 lows before finding a reprieve. The sell-off also forced some holders to exit at a loss.
The recovery to above $67,000 has helped restore confidence among BTC holders, especially short-term holders (STHs). STHs are entities that have bought BTC within the last 155 days. When prices exceeded $63,000, holders within this category began to become profitable, decreasing the selling pressure.
Miners Accumulating BTC As Uptrend Confirmed
Interestingly, as Bitcoin prices edge higher, it is also emerging that miners are not keen on selling.
Throughout July, IntoTheBlock data revealed that miners had been aggressively accumulating. Top mining farms like Mara Digital and Riot Blockchain accumulated over 4,500 BTC in the last three weeks alone.
The positive sentiment and expectations of BTC prices to edge higher have spilled over, impacting their stock prices. Last week, IntoTheBlock data showed that MARA and RIOT stocks rose by over 30%. Investors have endorsed these public mining firms, saying they will continue expanding in the coming weeks.
At the same time, it is emerging that entities holding at least 1,000 BTC are rapidly accumulating. By July 19, the amount of BTC held by this cohort stood at a two-year high.
Amid this development, the Bitcoin Market Value to Realized Value (MVRV) ratio, used to measure profitability, is rising. One analyst notes that as of July 22, the MVRV was bouncing off its one-year moving average, confirming that the BTC uptrend is valid.
Feature image from Canva, chart from TradingView
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