The volume of Bitcoin supply in profit has reached the levels last seen two years ago as the market came off its November 2021 all-time high, according to Glassnode. In its ‘Week on Chain’ report released this week, the analytics provider added that the magnitude of unrealized profit held within these coins remains modest. The percentage of Bitcoin’s circulating supply currently held in profit reached 83.6% or 16.36 million BTC during last week’s rally. Moreover, this is historically significant, being well above the all-time mean value of 74%, added Glassnode. Bitcoin Accumulation Accelerates Bitcoin rallied to its highest level of the year, tapping ,900 on November 16. However, it has currently retreated 4% from that high as markets continue to cool. With #Bitcoin
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The volume of Bitcoin supply in profit has reached the levels last seen two years ago as the market came off its November 2021 all-time high, according to Glassnode.
In its ‘Week on Chain’ report released this week, the analytics provider added that the magnitude of unrealized profit held within these coins remains modest.
The percentage of Bitcoin’s circulating supply currently held in profit reached 83.6% or 16.36 million BTC during last week’s rally. Moreover, this is historically significant, being well above the all-time mean value of 74%, added Glassnode.
Bitcoin Accumulation Accelerates
Bitcoin rallied to its highest level of the year, tapping $37,900 on November 16. However, it has currently retreated 4% from that high as markets continue to cool.
With #Bitcoin trading at yearly highs above $37k last week, over 83% of the coin supply was driven back into profitable territory.
However, the magnitude of unrealized profit remains modest, and is not yet sufficient for long-term investors to divest.https://t.co/IGJpglF20J
— glassnode (@glassnode) November 22, 2023
Using an Accumulation Trend Score, Glassnode reported that this recent surge has seen greater accumulation patterns than others this year. There were two significant rallies in late January and late March when prices jumped 40% and 50%, respectively.
This leg-up has seen a gain of around 40% from $26,800 in mid-October to last week’s high. However, there was a “robust accumulation regime” during the recent price expansion, it stated before adding:
“This broad uptick in accumulation means that strong market performance and increasingly optimistic hopes around a spot BTC ETF are improving investor confidence in the uptrend.”
Additionally, the crypto market has been within the bear/bull transition phase for the past ten months as it recovered from the 2022 crypto winter. Furthermore, the October rally is the first sustained break above average transition phase trading levels, it added.
In terms of long-term holder spending and profitability, Bitcoin markets have now entered an “equilibrium phase,” which usually precedes the “euphoric” bull market rally.
Market Reaction to Binance News
As a testament to market strength and overall sentiment, news of the CEO of the world’s largest crypto exchange and one of the industry’s most enigmatic characters stepping down after getting a huge fine from the US Justice Department has not rattled the markets as much as many expected.
Total market capitalization has fallen just 3% over the past 24 hours, with around $60 billion leaving the space.
Moreover, recovery has already started to be seen during the Wednesday morning Asian trading session, with the total cap returning to $1.43 trillion.
Naturally, BNB is the biggest loser, dropping 20% at one point, but Bitcoin and Ethereum are down marginally and well within typical daily trading ranges.