Bitcoin (BTC) surpassed the $50,000 mark on February 12, marking its first time reaching this level since December 2021. The digital currency experienced a 15% surge in February. However, BTC currently faces resistance at the $50,000 level, as shown on the daily chart. On February 13, the price retraced by more than 2% following the release of the United States Consumer Price Index report, which indicated a 3.1% annual inflation rate, exceeding consensus expectations.
Bitcoin holders have had a positive start to 2024, but data from blockchain analytics firm Glassnode suggests that the market may enter a transitional phase. Long-term BTC holders have spent over 300,000 BTC since November 2023. Since 2021, Bitcoin has closed above $50,200 for only 141 days, accounting for 2.84% of its trading history. The current price has put the majority of investors in a favorable position to potentially take profits. In fact, only 13% of the total supply is in a state of loss above $48,000. This data aligns with BTC’s recent unspent transaction output (UTXO) ratio data.
The UTXO ratio refers to the number of transactions in profit or loss by comparing the price at which a specific UTXO was created or destroyed. When the UTXO ratio is high, it indicates that the coins have not moved since they were created during that transaction. After BTC reached $50,000, the UTXO ratio reached 96.62%, signaling that investors were starting to see more profit.
On the other hand, short-term holders (STHs) have undergone a reset. During the rally of spot exchange-traded funds (ETFs), the STH supply in profit reached its peak at 100%. However, BTC’s correction to $38,000 reduced the average to 57.5%.
Meanwhile, spot Bitcoin ETFs experienced significant net inflows last week. According to Bloomberg senior ETF analyst Eric Balchunas, the cumulative net flows for 10 ETFs exceeded $3 billion. The CoinShares report also highlighted that the total crypto assets under management reached $59 billion, the highest since 2022.
The strong inflow of Bitcoin ETFs has resulted in the Coinbase premium index showing a premium, indicating increased buying pressure on the exchange.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.