Key Points
- 99.17% of Bitcoin holders were in profit, according to data from IntoTheBlock.
- Bitcoin’s MVRV ratio was at a three-year high, indicating potential profitability for investors.
Bitcoin’s [BTC] recent rise to a three-year high has led to significant profitability for its investors. A staggering 99.17% of holders were in profit at the time of reporting, as per data from IntoTheBlock.
This figure represented 51.45 million of all addresses holding the leading cryptocurrency. At its reported value of $63,215, no Bitcoin holder was considered to be “out of money”.
Profit-Taking and Support Levels
While some investors might be taking profits, this is a positive sign for Bitcoin. It indicates a general decrease in selling pressure from holders looking to break even on their investments.
Crypto analyst Ali_Charts noted that Bitcoin has a significant “support wall” between $54,300 and $56,200. This means a large number of addresses (903,540) had accumulated the coin within that price range. This support wall could potentially prevent a significant price drop.
Transaction Volume and MVRV Ratio
It was reported that Bitcoin’s rally above $63,000 led its daily ratio of transaction volume in profit to loss to reach its highest level in four years. For every transaction involving Bitcoin that ended in a loss on that day, 4.91 transactions returned a profit.
Additionally, Bitcoin’s Market Value to Realized Value (MVRV) ratio was at a three-year high of 171.95%. This ratio is used to determine if an asset is overvalued or undervalued relative to its historical price movements. This suggests that most coin holders could see an average of 172% profit on their investments if they sold their Bitcoins at the current market value.
