Bitcoin remains “largely profitable” despite months of stagnant BTC prices, according to a recent study. In its latest issue of The Week On-Chain released on June 18, analytics firm Glassnode debunked misconceptions about investors’ unrealized losses.
The analysis of BTC price trends highlights “investor boredom and apathy” amidst Bitcoin’s current price range. Despite trading within a narrow band, most hodlers haven’t experienced significant losses on their investments. Glassnode characterizes the current BTC price behavior as achieving stability, citing various on-chain metrics that indicate consolidation rather than widespread panic.
“Sideways price movement often triggers investor disinterest and indifference, which seems to be the prevailing sentiment across Bitcoin markets,” Glassnode observed.
Utilizing the market value to realized value (MVRV) metric, researchers demonstrated that overall, BTC holdings still show more than double their initial value, a gain of 120% in USD terms. The annual average MVRV stands at 86% presently.
“The MVRV Ratio remains above its annual benchmark, indicating the underlying uptrend remains intact,” the accompanying analysis affirmed.
The newsletter’s tone contrasts sharply with some alarmist reactions to the recent dip in BTC prices. As reported by Cointelegraph, traders are wary of potential breaches of support trendlines and the possibility of revisiting multi-month lows.
One crucial indicator currently under scrutiny is the aggregate purchase price for Bitcoin held by short-term holders (STHs), a significant segment of speculative investors. According to data from LookIntoBitcoin, the STH cost basis stands at $64,000.
Despite witnessing diminishing unrealized gains, STH entities are not actively preparing for a mass sell-off at current price levels, according to Glassnode. “Currently, Short-Term Holders are transferring approximately +17.4k BTC/day to exchanges,” it calculated.
The article concludes with a disclaimer that it does not provide investment advice. It advises readers to conduct their own research and assessments before making any investment or trading decisions.