Bitcoin
Bitcoin [BTC] holders cheer the bull run, but is there more to the story?
- Bitcoin’s recent bull run generates profits for long and short-term investors.
- A spike in interest and high MVRV ratio could impact BTC’s price.
The recent bull run in the crypto space has brought all eyes to Bitcoin [BTC], with its soaring prices generating profits for both long-term and short-term investors. According to new data provided by Santiment, holders across all spectrums have become profitable for the first time in 14 months, leading many to believe a bull run for the king coin is approaching.
? The average returns for #Bitcoin amongst long-term hodlers and short-term "new money" has blasted into positive territory for the first time in 14 months. Our latest insight covers how this key indicator cross is valuable to gauge the next #bullrun
. https://t.co/g2lSi9OXoI pic.twitter.com/50z1LPmXcD— Santiment (@santimentfeed) March 20, 2023
Bitcoin holders get active
As a result, addresses holding more than 10 BTC have started to accumulate large amounts of the cryptocurrency, and other investors are also showing interest in the Bitcoin network, causing activity on the network to rise. Artemiz’s data shows that Bitcoin is the third largest network in terms of active addresses at press time.
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The amount of Bitcoin's supply held by entities with less than 10 BTC continues to reach new highs
Over time supply will continue to become more distributed, putting to rest any arguments against Bitcoin regarding supply concentration pic.twitter.com/piXbdT8sS4
— Will Clemente (@WClementeIII) March 20, 2023
Inscriptions on the BTC network and the resulting Ordinals NFTs have also contributed to the spike in interest in the Bitcoin network. These factors have helped the fees accumulated on the network to rise, reaching a 15-month high of $37,452.54 according to Glassnode’s data.
Proceed with caution
Despite these positive developments for BTC, things could come crashing down at any moment. The high MVRV ratio suggests that many holders at press time could be incentivized to sell their Bitcoin for a profit, potentially driving down the price.
Source: Santiment
Furthermore, miner revenue has started to decline. If miners continue to lose out on profits, they may be forced to sell their BTC to cover losses, which could also drive down the price of the cryptocurrency. Other factors such as hashrate, difficulty and the upcoming Bitcoin halving will also play an important role in the miner’s decision-making process.
Read Bitcoin’s Price Prediction 2023-2024
Source: glassnode
Investors should keep a close eye on these developments, as they could have a significant impact on the price of Bitcoin. While the current trend is positive, the state of Bitcoin can be unpredictable, and it’s always important to exercise caution when investing. Especially during times of high speculation.
