• 59% of Bitcoin holders are currently profitable as the coin trades above the Realized Price.
• On-chain data shows that the Realized Price of Bitcoin is around $19,700.
• 38% of market participants are out of the money, while Bitcoin price action is recovering.
As the crypto market continues to evolve and expand, investors have to stay on top of the latest data to make informed decisions. Recently, IntoTheblock data has revealed that 59% of Bitcoin holders are currently in the green, as the coin trades above the Realized Price.
The Realized Price of Bitcoin is derived from on-chain data, which is crunched in real-time to gauge the state of the market. With the current Realized Price hovering around $19,700, this means that the average cost basis of a Bitcoin holder is lower than the spot BTC price of over $20,700. This development is particularly advantageous for those who have been HODLing their coins, considering the sharp contraction of prices over the past few months.
Back in November 2021, Bitcoin was trading at a high of around $69,000 before plunging to slightly over $15,000 in 2021. The recent price action of Bitcoin is a sign of recovery, with more than half of BTC holders now in the money. However, only 38% of market participants are still out of the money, indicating that there needs to be a comprehensive breakout in order to solidify and revive demand.
Analysts are interpreting the on-chain data to determine how retail traders act based on price action. With the majority of Bitcoin holders now sitting on profits, it’s a positive sign for the crypto ecosystem and could have a significant impact on the overall market sentiment. Investors should continue to monitor the on-chain data and price action of Bitcoin to make informed decisions about future investments.