Data from IntoTheBlock reveals that more than 75% of all Bitcoin holders are in-the-money at spot rates when prices are high for several weeks, trading around $30,000 at the time of writing on June 22. Bitcoin has been on a solid uptrend for the past few trading days, propelled by supportive fundamentals.
The world’s most valuable cryptocurrency is now up about 22% from June 2023 and is moving above crucial resistance levels, now support. At this rate, proponents expect the coin to not only continue to climb higher but also break above the April highs and print new 2023 highs in continuation of the bullish trend from the March to April 2023 trading range.
75% of Bitcoin holders are green
At spot rates, data from IntoTheBlock shows that 75% of all BTC holders are in the money, while a paltry 3% break even. This means that these holders are not red or green, but are stable without booking any added value.
Meanwhile, despite rapid gains in the past trading week, 22% of all BTC holders are losing money. There is a high probability that these individuals bought their coins at recent cyclical highs, and given the sharp declines in recent weeks, they are still struggling to break even and are nowhere near turning a profit.
To illustrate, while Bitcoin sits around $30,000, BTC crashed from around $31,000 to $24,800 from its April 2023 highs, down 20%. This followed an encouraging surge from mid-March, when BTC prices surged from $19,700 to record new 2023 highs in April, up 56%.
Notably, even at its current formation, bulls expect a resumption of this solid trend and a possible break above $31,000 in continued performance in Q1 2023. At that point, the uptick followed fears of a system-wide collapse of banks in the United States.
The collapse of the Silicon Valley Bank (SVB) affected USDC issuer Circle and forced capital to create coins like Bitcoin. During that time, Binance also said they were converting their $1 billion Industry Recovery Fund into Bitcoin and other assets including BNB and Ethereum to pump these coins.
The Bitcoin run continues
Bitcoin remains supported primarily due to regulatory factors, including the U.S. Securities and Exchange Commission’s (SEC) reiteration that the coin is the only commodity in the nascent sector. In their legal actions against Binance and Coinbase, the regulator alleged several top-tier altcoins, including Cardano’s ADA, as examples of unregistered securities. As these coins declined, capital flowed into Bitcoin, driving prices higher.
However, rising interest from institutions including BlackRock and Valkyrie and their application for a Bitcoin spot exchange-traded fund (ETF) has supported prices. Whether the SEC will approve it remains to be seen. In recent years, the regulator has disapproved several Bitcoin Spot ETFs, citing manipulation and the unregulated nature of cryptocurrencies.
Feature image from Canva, chart from TradingView
