Posted: February 8, 2024 8:02 AM Updated: February 8, 2024 8:02 AM
Correction and fact check date: February 8, 2024, 8:02 a.m.
briefly
Bitcoin (BTC) price surged to $44,500, partly due to increased holdings of the cryptocurrency in the wallets of major Bitcoin holders.
Bitcoin (BTC) price has surged to $44,500, suggesting that the decentralized cryptocurrency’s period of consolidation may be resolved. On-chain indicators have been consistently strong, indicating that Bitcoin is likely to see further gains soon. Especially the strong support level at $43,080.
With a current price of $44,675 (at the time of writing), this rally is partly due to an increase in holdings observed in wallets containing more than 1,000 Bitcoin, indicating renewed confidence among major Bitcoin holders. .
According to Plan BThe creator of Bitcoin’s Stock-to-Flow model reportedly has 90% of all Bitcoins currently in a profitable position, representing the highest percentage since Bitcoin reached its peak in mid-November 2021.
In a recent analysis, PlanB presented a chart with orange dots, symbolizing that 90% of all Bitcoin mined are currently in a profitable state. The analyst clarified that the appearance of a red dot on the chart means 100% profitability for all Bitcoin, which now consistently follows the orange dot.
It was further emphasized that when profitability moves into the “red” level, as indicated by the yellow dot on the chart, the metric moves ahead of the possibility of profitability dropping to 60%.
The analysis highlights that only individuals who acquired Bitcoin at the current 2021 peak price are experiencing losses, while all other Bitcoin holders are in a profitable position.
Stock market performance fuels Bitcoin price resurgence
Amid a strong resurgence in the overall cryptocurrency market, the price of Bitcoin has risen noticeably by more than 4.4% in the past 24 hours, reaching a high of $44,700 at the time of writing, according to data from CoinMarketCap.
This is a significant milestone as it marks the first time the price of BTC has surpassed $44,000 since the launch of the spot Bitcoin ETF last month.
According to on-chain data provider Santiment, the current resurgence is partly due to an increase in holdings observed in wallets containing more than 1,000 bitcoins. The total holdings of these sizable wallets have reached a 14-month high, suggesting renewed confidence among major Bitcoin holders.
Additionally, continued momentum in US stock markets provided further support for risk assets, including cryptocurrencies. Recently, the S&P 500 index of major listed companies closed at an all-time high, approaching the 5,000 mark.
At the same time, the blue-chip index, the Dow Jones Industrial Average, is near an all-time high, and the broader market index, the Nasdaq Composite, is near a record. Given the continued correlation between cryptocurrencies and the S&P 500, Bitcoin, Ethereum, and other cryptocurrencies are expected to match the positive trajectory seen in the stock market.
The recent surge in Bitcoin price, combined with current market conditions including profitability and positive momentum in the stock market, highlights a bullish trend for the cryptocurrency and indicates the potential for further upside in the near future.
disclaimer
In accordance with the Trust Project Guidelines, the information provided on these pages is not intended and should not be construed as legal, tax, investment, financial or any other form of advice. It is important to invest only what you can afford to lose and, when in doubt, seek independent financial advice. We recommend that you refer to the Terms of Use and help and support pages provided by the publisher or advertiser for more information. Although MetaversePost is committed to accurate and unbiased reporting, market conditions may change without notice.
About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
more articles
alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
more articles