As per the update, more than 70% BTC holders were in a profitable position as of today. However, the profit-gaining attitude could see traders selling their BTC at the ongoing price leaving the king of cryptocurrencies in a vulnerable spot. Bitcoin has been regaining its appeal and inflation might not be a major threat anymore.
The supply of BTC in profit recently notes to 72.3%. But just what does this mean? during the lowest point in 2022, Less than 50% of the supply in profit at its lowest point.
Now that the market has been recovering, the level of BTC profitability also improved. But that’s not all.
The BTC supply in profit is based on prices above $30,000. In other words, approx. 72% of the BTC below the range of $30,000 price is now in profit. While that number seems high, it shows that there was quite a high level of confidence in BTC holders.
ALSO YOU CAN VISIT OUR PERVIOUSE BLOG ABOUT BITCOIN HALVING AND BTC DEMAND 2050
Is inflation finally Favor Bitcoin?
The market direction depends on multiple market factors. Inflation will be major factors that influenced BTC prices in recent months. This is because of the inflation has mostly been raising interest rates.
Unfortunately, high-interest rate discourage investment, and asset prices fall. Recent data suggested that analysts anticipate lower core inflation.
BTC prices were bearish during months when inflation escalated. This means higher than anticipated inflation might yield some selling pressure. However, that does not necessarily have to be the outcome since BTC was initially created as a hedge against inflation. But, heavily leveraged BTC positions played a huge role in initiating sell pressure due to liquidations. BTC is no longer playing by the rules of the traditional investment market. Some see this as a advantage for BTC to finally function as an inflation hedge. After all, most of the overleveraged liquidity has already been weeded out.
A look at address activity shows that more whales have been finding BTC attractive in the last few months. For instance, addresses holding at least 1,000 BTC have been rising since early March.
Bitcoin Price short term Prediction
Bitcoin has had an eventful 2021. To simplify the latest BTC price prediction, we have divided up the prediction by short term Bitcoin price prediction and long term Bitcoin price prediction. As of writing this article, BTC had a trading volume of $10,010,615,364. Bitcoin has gone up by 14.56% in the past 30 days.
According to our analysis in the short term, Bitcoin price prediction for September 2023 shows the average price of BTC at $34092.82 and the highest possible price for September 2023 would be $36479.31. Further, according to our analysis in the long term, Bitcoin price prediction for January 2024 shows the average price of BTC at $28849.68 and the highest possible price for January 2024 would be $30869.15.
In summary, BTC has been receiving a lot of attention in the last few months. Market confidence has improved significantly, especially after the events of 2022 judging by the profitability. So much that even whales have been getting in on the action.
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