Exciting news for Bitcoin holders!
Currently, a significant 75% of the total Bitcoin circulating supply is in a profitable state. This means that the price at which these coins were last bought or transferred is lower than the current price, resulting in unrealized gains for the holders.
When the percentage of profitable Bitcoin increases, it indicates that more investors are making money from their investments. However, this situation also brings a potential challenge. As investors witness their profits grow, they may be tempted to sell their Bitcoin. If a large number of people decide to sell and cash in their gains, it could cause a decline in Bitcoin’s price.
To better understand this trend, let’s take a look at the chart displaying the 7-day average. It clearly shows a notable increase in Bitcoin’s profitability, coinciding with the recent rally in its price. This rally has pushed the price towards the $31,000 level, putting a considerable number of investors in a profitable position.
With approximately 75% of Bitcoin currently showing unrealized profits, it’s natural for some investors to consider selling and securing their gains. If a significant selling pressure emerges, it could lead to a temporary drop in Bitcoin’s price.
It’s worth noting that the current level of profitability aligns with previous instances when Bitcoin reached its peak in April of this year and encountered resistance in early 2022. This suggests that the market is facing a critical juncture, where it needs to overcome this resistance to sustain the ongoing rally.
As of now, Bitcoin is trading around $31,000, reflecting a 1% increase over the past week. The surge in profitability is an important development to monitor, as it can potentially impact the future price movements of Bitcoin. Investors should pay close attention to this trend and assess its implications for their investment strategies.
