New research suggests that Bitcoin remains profitable despite months of sideways price action, according to a recent edition of Glassnode’s weekly newsletter, The Week On-Chain, published on June 18. The analytics firm challenges the notion of investors experiencing unrealized losses.
Despite Bitcoin trading within a narrow range, most hodlers are not witnessing a decline in their returns on investment. Glassnode describes the current price behavior as “establishing equilibrium,” citing various on-chain metrics that indicate Bitcoin is consolidating rather than capitulating.
The analysis points to investor boredom and apathy as common reactions to sideways price movement in Bitcoin markets. Using the market value to realized value (MVRV) metric, researchers show that, on average, BTC is still up by over 120% from its purchase price in USD terms, with the one-year MVRV average at 86%.
The MVRV Ratio remaining above its yearly baseline indicates that the overall uptrend in Bitcoin is still intact. This contrasts with the panicked reactions to recent price drops in the market.
While traders are cautious about support trendlines breaking and the possibility of multimonth lows returning, Glassnode’s data suggests that short-term holders are not rushing to sell off their BTC holdings at current prices. Despite seeing unrealized gains diminish, Short-Term Holders are only sending around +17.4k BTC/day to exchanges, according to the analytics firm.
It’s important to note that this article does not offer investment advice. Readers are encouraged to conduct their own research and analysis before making any investment decisions.