Despite Bitcoin’s recent struggle to maintain higher price levels, with the cryptocurrency dipping below $64,000, a significant majority of BTC holders are still seeing profits. Data from IntoTheBlock indicates that 87% of Bitcoin holders are in profit, even as Bitcoin’s price wavers following a rejection from the $70,000 mark.
MicroStrategy’s Massive BTC Purchase Amidst Price Fluctuations
MicroStrategy recently made headlines with its purchase of 11,931 BTC, valued at $786 million, funded through a convertible notes offering. This acquisition led to a slight increase in Bitcoin’s price, pushing it above $65,000. However, the price has since fallen back below $64,000. Despite this volatility, the majority of Bitcoin holders remain profitable, with many having acquired their BTC at lower average prices.
On-Chain Data Highlights Profitable Holdings
According to on-chain data, approximately 46.72 million Bitcoin addresses are currently “in the money,” meaning they hold BTC at a profit. In contrast, 5.68 million addresses, nearly 11%, are holding their coins at a loss. About 2.67%, or 1.44 million addresses, are at the money, having acquired BTC at prices corresponding to the current market value.
Bitcoin’s Battle for Price Stability
Bitcoin, which reached an all-time high above $73,000 in March, has experienced significant price fluctuations in recent weeks. After dropping to lows of $56,000 in early May, Bitcoin spiked above $71,000 before facing rejections in late May and early June. Recently, BTC and Ethereum (ETH) prices both fell over 3%, with BTC dipping below $64,000 and ETH dropping under $3,500. Currently, Bitcoin is trading around $63,700, while ETH is near $3,503. Over the past 30 days, Bitcoin has declined by 8%, and Ethereum by 6%, amid various downside pressures.
Downside Catalysts and Miner Sell-Offs
IntoTheBlock analysts suggest that the $61.9k to $63.8k range could serve as a critical support area for Bitcoin. Several factors have contributed to the recent sell-off pressure, including net outflows from spot Bitcoin ETFs and continued post-halving miner sell-offs. On-chain data reveals that miners sold over 30,000 BTC in June alone.
Insights from Bitcoin Analysts
Bitcoin analyst Willy Woo has commented on the ongoing miner capitulation, noting that it remains a key downside factor for BTC in the short term. Woo explained that Bitcoin recovery typically occurs when weaker miners exit the market and hash rate recovers. He noted that this capitulation phase is taking longer than usual due to increased miner profits from ordinal inscriptions.
Potential Government Sell-Off Impact
Additionally, potential sell-off pressures have emerged from the German government. Earlier this year, German police seized 50,000 BTC (then worth $2.1 billion) from the pirated film site “Movie2K.” The value of these coins surged to over $3 billion as Bitcoin’s price increased. Recently, a BTC address linked to this seizure moved over $110 million worth of Bitcoin to exchanges like Kraken and Bitstamp, contributing to the selling pressure.
Despite these challenges, the majority of Bitcoin holders remain profitable, demonstrating resilience in the face of market volatility.
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