Majority of Bitcoin investors see profits despite BTC dropping below 64k
Despite the recent struggle of Bitcoin’s price to break higher after being rejected at the $70k mark, the majority of BTC holders are still in a profitable position. MicroStrategy, for instance, recently purchased a significant amount of Bitcoin worth $786 million, but the slight increase in price to above $65,000 has since dropped back below $64,000.
Data from IntoTheBlock reveals that 87% of BTC holders are currently in profit. This means that most holders acquired BTC at lower average prices compared to the current level and are therefore in a favorable position. On-chain data further shows that 46.72 million addresses are currently in profit, while 5.68 million addresses, which account for nearly 11% of all addresses, are holding their coins at a loss. Only 2.67% of addresses, or 1.44 million, acquired BTC at prices that correspond to the current trading price.
Bitcoin’s price has been struggling to see significant upward movement recently. Despite reaching an all-time high above $73k in March, BTC has faced setbacks, falling to lows of $56k in early May and experiencing rejections above $71k on two separate occasions. As of now, Bitcoin is trading around $63,700.
In addition to Bitcoin, Ethereum has also seen a decline, with both cryptocurrencies dropping more than 3% on Friday. Bitcoin’s price is down 8% in the past 30 days, while Ether has declined by 6%. These performances can be attributed to various factors that have contributed to bearish sentiment in the market.
According to analysts at IntoTheBlock, the range between $61.9k and $63.8k could potentially serve as a key support area for Bitcoin, as sentiment leans towards bearish.
One of the catalysts for the recent sell-off pressure is the net outflows from spot Bitcoin ETFs. Additionally, miners have been selling their Bitcoin holdings post-halving, with over 30,000 BTC being sold in June according to on-chain data. Bitcoin analyst Willy Woo believes that miner capitulation will continue to be a significant downside factor for BTC in the short term. He explains that Bitcoin’s recovery will occur when weak miners exit the market and the hash rate recovers.
Another factor contributing to the sell-off pressure is a potential dump by the German government. Earlier this year, German police confiscated 50,000 BTC worth $2.1 billion from a pirated film site. The surge in Bitcoin’s price has increased the value of these coins to over $3 billion. The BTC address linked to the seizure has moved over $110 worth of Bitcoin to exchanges, including Kraken and Bitstamp.
