75% of bitcoin holders are making money on the spot rate: data

Data from IntoTheBlock turns out When prices hit multi-week highs, more than 75% of all bitcoin holders had money at the spot rate, which was trading at around $30,000 as of writing on June 22. There has been a strong rally in bitcoin in the last few trading days. Driven by supportive fundamentals.

The world’s most valuable cryptocurrency is now up nearly 22% since June 2023 and trading above key resistance levels, now support. At this momentum, supporters expect the coin to not only continue higher, but also break April highs and print new 2023 highs, continuing the bullish trend of the March to April 2023 trading range.

75% of bitcoin holders are in the green

At spot rates, IntoTheBlock data shows that 75% of all BTC holders are in the money, while a modest 3% break even. This means that these holders are not in the red or green but are stable with no capital gains.

Meanwhile, 22% of all BTC holders are losing money, despite sharp gains over the past trading week. There is a high probability that these individuals bought their coins at the recent cyclical top, and given the sharp decline over the past few weeks, they are still struggling to break even and are far from making profits .

For example, while bitcoin is at around $30,000, BTC has dropped from its April 2023 high of around $31,000 to $24,800, a 20% drop. This was followed by an encouraging surge from mid-March when BTC price surged from $19,700 in April to a new 2023 high, a 56% gain.

Notably, even on the current formation, the bulls are expecting a resumption of this solid uptrend and a possible break above $31,000, continuing the performance in Q1 2023. At the time, the bullishness followed fears of a system-wide collapse of banks in the United States.

The collapse of Silicon Valley Bank (SVB) affected the issuer circle of USDC and forced capital to establish coins such as 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, pumping these coins.

bitcoin run continues

Bitcoin is supported primarily by regulatory factors, including the United States Securities and Exchange Commission’s (SEC) statement that the coin is the only commodity in the emerging market. In its legal action against Binance and Coinbase, the regulator accused several top-tier altcoins, including Cardano’s ADA, as examples of unregistered securities. While these coins fell, capital flowed into bitcoin, driving the price higher.

However, increasing interest from institutions including BlackRock and Valkyrie and their applications for a bitcoin spot exchange-traded fund (ETF) is supporting the price. It remains to be seen whether the SEC will approve. In recent years, regulators have rejected several bitcoin spot ETFs, citing manipulation and the unregulated nature of the cryptocurrency.

Feature image from Canva, chart from TradingView