In the last week, Bitcoin (BTC) secured an all-time high above $109,000 as Billionaire Republican Donald Trump became the 46th US President. However, the premier crypto asset has since declined, with its current market price now below $105,000.  Interestingly, current data on Bitcoin holders’ profitability backs the bullish structure of the market indicating little potential for bearish sentiment.

Bitcoin Holders Reap Huge Profits: Long-Term Investors Up 70%

In the crypto market, an asset’s holders’ profitability based on their realized price i.e. average cost of acquisition,  is an important metric in predicting investors’ sentiments. In a Quicktake post on CryptoQuant, an analyst with the username Crazzyblockk has provided insight on Bitcoin holders’ profitability across three major tiers.

The analyst states that data from CryptoQuant reveals that BTC long-term holders i.e. investors of more than 6 months are presently experiencing an average profit of 70%. Meanwhile, short-term holders i.e. holding less than six months are seeing a moderate 14.5% profit, reflecting their ability to accurately navigate recent market conditions.

Finally, despite limited exposure, new investors i.e. holders of Bitcoin for less than 1 month are experiencing a small profit of 4.7%. Going by this data, no tier of BTC holders are currently facing significant losses reducing the possibility of a widescale market sell-off.

Importantly, while profitability percentages have shown a minor decline relative to previous weeks and months, the BTC market is unlikely to slip into a bearish phase as long as short-term holders and new market entrants continue to record substantial profits.

The relevance of these tiers of Bitcoin holders stems from ongoing distribution by Bitcoin long-term holders who are currently taking profit. For example, popular crypto analyst Ali Martinez

Go to Source to See Full Article
Author: Semilore Faleti