Over the past week, Bitcoin (BTC) secured an all-time high above $109,000 as billionaire Republican Donald Trump became the 46th President of the United States. However, the top crypto asset has declined since then, with its current market price now below $105,000. Interestingly, current Bitcoin holder profitability data supports the bullish structure of the market, indicating little potential for bearish sentiment.
Bitcoin Holders Reap Huge Profits: Long-Term Investors Up 70%
In the crypto market, the profitability of an asset’s holder is based on their realized price, i.e. average acquisition cost, an important metric for predicting investor sentiment. In one Quick post at CryptoQuant, an analyst with the username Crazzyblockk has provided insight into Bitcoin holder profitability across three major levels.
The analyst states that data from CryptoQuant reveals that BTC long-term holders i.e. investors of more than 6 months are currently experiencing an average gain of 70%. At the same time, short-term holders, i.e. lasting less than six months, a modest gain of 14.5%, reflecting their ability to accurately navigate recent market conditions.
Finally, despite limited exposure, new investors, i.e. holders of Bitcoin for less than 1 month, experience a small gain of 4.7%. Based on this data, no group of BTC holders is currently facing significant losses, reducing the possibility of a large-scale market selloff.
Importantly, while the profitability percentage has shown a minor decline compared to previous weeks and months, the BTC market is unlikely to slip into a bearish phase as long as short-term holders and new market entrants continue to post significant gains.
The relevance of these levels of Bitcoin holders stems from the ongoing distribution of Bitcoin long-term holders who are currently taking profits. For example, the popular cryptanalyst Ali Martinez reports that long-term holders of Bitcoin lost 75,000 BTC in the past week.
These significant amounts of Bitcoin unloaded by long-term holders are bought off short-term holders and new investors removing the effect of any selling pressure in the market. Therefore, if these investors start suffering losses, it could trigger strong bearish pressure on BTC.
BTC Price Overview
At press time, Bitcoin is trading at $104,737, reflecting a gain of 0.09% over the past day. The first cryptocurrency is down 0.46% on the weekly chart. However, a price increase of 8.71% in the last 30 days reflects the current bullish structure of the BTC market.
After the inauguration of Donald Trump, expectations for BTC are likely to grow higher given the new US president’s pro-crypto manifesto. So far, President Trump’s administration appears to be off to a promising start, marked by the SEC’s repeal of the controversial SAB 121 and an executive order investigating the creation of a national digital asset inventory.
Featured image from bitperfect, chart from Tradingview
