As the profitability for long-term Bitcoin holders hits a peak in 2023, the price looks towards a rally of $48,000

20 December 2023, Wednesday
As the profitability for long-term Bitcoin holders hits a peak in 2023, the price looks towards a rally of $48,000.

Bitcoin Price Shows Steady Gains and Profitability for Holders

 

Bitcoin Price Stability

 

The price of Bitcoin has been steadily increasing, with a nearly 3% gain for the week. It has remained above the $42,500 level, which is a positive sign for investors. Currently, the price of Bitcoin is $42,600 on Binance.

 

Profitability for Bitcoin Holders

 

A recent report by Glassnode on Bitcoin reveals that in 2023, long-term, short-term, and average holders have become moderately profitable. This is due to the gains in Bitcoin’s price during the fourth quarter. While the profit-loss ratio is not extremely high, it has surpassed the break-even point.

 

Bitcoin Holders’ Statistics

 

According to Glassnode’s review, as of December 17, long-term holders of Bitcoin held 14.9 million Bitcoin. Between January 1 and December 17, 2023, these long-term holders added 825,000 BTC to their holdings. On the other hand, short-term holders saw a decrease in their supply, dropping by 506,000 to 2.317 million BTC tokens on December 17.

 

Increased Profitability

 

As the price of Bitcoin continues to rise, Glassnode analysts report that a “super-majority” of investor coins have become profitable. The number of coins held in losses has decreased to 1.9 million BTC. Most of these tokens are held by long-term holders who acquired Bitcoin during its peak in 2021.

 

Bitcoin’s Recovery

 

The supply of Bitcoin held “in-profit” has reached 90% of the circulating supply. This is a significant improvement considering that at the beginning of 2023, 50% of Bitcoin’s supply was underwater. This recovery is one of the fastest in the history of the asset.

 

Future Outlook

 

With the upcoming Bitcoin halving and the potential approval of Spot Bitcoin ETFs, the stage is set for Bitcoin’s price to rally in 2024. This is good news for most of Bitcoin’s long-term holders who currently have profitable coins.