Glassnode data shows that in this wave of bullish market, the profitability ratio of circulating Bitcoin has increased from about 75% to the current 95%. This significant increase reflects the strong performance of Bitcoin’s price. If we calculate from the previous market low, which was around $18,000, the profitability ratio of Bitcoin has increased by 50% from the original 45%.
On the other hand, data from INTO THE BLOCK shows that the BTC balance of whale Bitcoin holders has shown strong growth this year. INTO THE BLOCK expects this trend to continue as institutional investors now have easier access to Bitcoin with the introduction of Bitcoin spot ETF.
Cryptocurrency analyst Marcel Pechman recently pointed out in an article that based on market data, investors expect S&P 500 companies to achieve a profit growth of 10.9% in the future, significantly higher than the 3.8% in 2023. This indicates that, in the current economic environment, investors may have reduced interest in alternative assets such as Bitcoin.
Pechman analyzed that for Bitcoin to reach a new all-time high of $70,000 from the current $52,000, it would need to rise an additional 34.5%, which means its market value would increase by about $350 billion. However, as long as the US dollar continues to depreciate, it is still possible for Bitcoin to rise above $70,000.
However, Pechman mentioned that this significant price increase is unlikely to happen before the Bitcoin block reward halving in April. The halving typically has a significant impact on Bitcoin’s price, but before that, the market may not see significant price movements.
(Related News:
QCP Capital: Bitcoin easily broke $69,000 in March! Spot ETF continues to attract funds, with a daily net inflow of 13,000 BTC
)
(Background Supplement:
Bitcoin spot ETF trading volume approaches CEX! CryptoQuant: Institutional impact on BTC will become more apparent
)
Image description:
– Image 1: A graph showing the profitability ratio of Bitcoin.
– Image 2: A graph showing the increasing BTC balance of whale Bitcoin holders.
Related reports:
– US banks enter the Bitcoin spot ETF market: Urging the SEC to modify the definition of cryptocurrency assets to compete for custody services
– Crypto market update: Bitcoin climbs to $52,500, Ethereum surpasses $2,800, BTC market cap surpasses $1 trillion
– Why is Bitcoin not rising? Miners have sold 8,400 BTC this year, reserves at a 30-month low.