Bitcoin has had an eventful week in terms of price action. The world’s largest crypto saw an 18% increase in the past seven days, its highest percentage increase this year. This unexpected surge caused a flurry of short position liquidations, and according to Glassnode, 60,000 BTC worth of futures positions were closed. Amidst all the price surge, data from Glassnode has shown a large portion of investors are now breaking above profit.
Bitcoin Surges Past $35,000, Flipping Millions of Coins Into Profit
Bitcoin bulls managed to push Bitcoin price above $35,100 in the past 24 hours, marking the biggest one-day increase this year. The upward movement began near the $25,000 level and continued until it reached its new yearly high.
A blockchain analytics platform Glassnode report showed that Bitcoin zooming past $35,000 is a big deal for holders. At this price level, millions of BTC holdings were pushed into profitability. During this rally, the percent of supply in profit from the $25,000 to $35,000 price jump increased by a massive 4.7M BTC, equivalent to 24% of the total circulating supply.
Long-term investors, in particular, had a big break in profit at this price point. Although approximately 29.6% of long-term holder supply is still held at a loss, their aggregate holdings recently broke into a new all-time high of 14.899 million BTC.
Source: Glassnode
Short-term holders were also not left out, as investor confidence has recovered from bearish to neutral on the cost-basis models. We’re now at a crossover point to a positive bullish sentiment for short-term holders. A look into the average buy price of short-term holders puts the majority of entry into the market at $28,000, indicating a profit margin for both short and long-term traders.
Source: Glassnode
Source: GlassnodeWhat’s Behind Bitcoin’s Sudden Price Surge?
The sudden surge in Bitcoin can be attributed to the excitement behind the approval of BlackRock’s spot Bitcoin ETFs application. Bitcoin backers pointed to the listing of BlackRock’s iShares Bitcoin Trust on the Depository Trust and Clearing Corporation (DTCC) website, suggesting that BlackRock had begun seeding money for the ETF.
Although Bitcoin has since shed off some of this price gain and is now trading at $33,860 at the time of this writing, metrics show that 80% of holders are making money at the current price. Exchange signals also point to bullish momentum, as traders are now exchanging their assets for BTC on crypto exchanges.
The rise in the value of Bitcoin to $35,000 was reflected in the stock prices of crypto-related companies like Coinbase and MicroStrategy. At that price, MicroStrategy’s Bitcoin holdings would have generated a profit of $857 million for the company.
BTC reclaims $34,000 once more | Source: BTCUSD on Tradingview.com
Featured image from Outlook India, chart from Tradingview.com
