Bitcoin price eyes $48,000 target amidst rising profitability of long term BTC holders
- Bitcoin price sustains its recent gains, holding steady above $42,500 on Wednesday.
- Long-term holders hold $635.7 billion worth of Bitcoin as of December 17, according to a Glassnode report
- BTC price is currently approaching a level where nearly 90% of the supply is profitable.
Bitcoin price sustained nearly 3% weekly gains as price steadied above the $42,500 level on Wednesday. According to a recent Glassnode report on Bitcoin, in 2023, long-term, short-term and average holders turned from unprofitable to a moderately profitable state following Bitcoin price gains in the fourth quarter. While the unrealized profit-loss ratio is not at a euphoric high, it has crossed the break-even level.
At the time of writing, Bitcoin price is at $42,600 on Binance.
Also read: Bitcoin price could climb to $45,000, alongside updates in Spot Bitcoin ETF filing by BlackRock
Daily Digest Market Movers: Bitcoin held by long-term holders hits highest level in 2023
- According to Glassnode’s 2023 review for Bitcoin, Ethereum and altcoins, BTC held by long-term holders hit 14.9 million Bitcoin as of December 17.
- Between January 1 and December 17, 2023, Bitcoin’s long-term holders added 825,000 BTC to their holdings, as seen in the chart below.
- In the same timeframe, short-term holder supply dropped by 506,000 to,2.317 million BTC tokens on December 17.
Bitcoin Long/Short-term holder supply threshold. Source: Glassnode
- As Bitcoin price rallies higher, Glassnode analysts state that a “super-majority” of investor coins have turned to profitability. Coins held in losses have declined to 1.9 million BTC and the biggest chunk of these tokens are held by long-term holders that acquired Bitcoin during the 2021 highs.
- Bitcoin supply held “in-profit” has climbed to 90% of the circulating supply. Bitcoin started 2023 with 50% of its supply underwater, the run-up to 90% marks one of the fastest recoveries in the asset’s history.
Bitcoin percent supply in profit
- Most of Bitcoin’s long-term holders have profitable coins. With the upcoming Bitcoin halving and the likely approval of Spot Bitcoin ETFs, the stage is set for BTC price to rally in 2024.
Technical Analysis: Bitcoin price eyes gains in 2023
Bitcoin price maintained its uptrend, forming higher highs and higher lows. BTC price sustained above $42,000 for the third day this week, eyeing a comeback to $44,700, seen on December 8. Once Bitcoin's price crosses the resistance range between $44,700 and $45,300, the asset is likely to target the $48,000 level, as seen in the chart below.
BTC price is currently above its three long-term Exponential Moving Averages (EMAs) at 10, 50 and 200-days.
BTC/USDT 1-day chart
In the event of a daily candlestick close below $42,000 could invalidate the bullish thesis for Bitcoin price.
Ripple FAQs
What is Ripple?
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
What is XRP?
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
What is XRPL?
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
What blockchain technology does XRP use?
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
