Fresh research from analytics firm Glassnode has debunked the notion that Bitcoin investors are suffering from significant unrealized losses amidst the recent period of sideways price action for the cryptocurrency. In its latest newsletter, The Week On-Chain, Glassnode highlighted the fact that despite Bitcoin trading in a narrow range, the majority of hodlers are still in a profitable position. The firm described the current price behavior as “establishing equilibrium” and pointed to various on-chain metrics that indicate Bitcoin is in a phase of consolidation rather than capitulation.
Using the market value to realized value (MVRV) metric, Glassnode revealed that, on average, the current value of BTC is still up by over 120% compared to its purchase price in US dollar terms. The MVRV Ratio also remains above its yearly baseline, suggesting that the macro uptrend for Bitcoin is still intact.
While some traders have reacted with panic to the recent price drop, especially with concerns about support trendlines breaking and multimonth lows reappearing, Glassnode’s data shows that short-term holders of Bitcoin are not rushing to sell off their holdings at current prices. Despite seeing their unrealized gains diminish, these entities are currently sending around 17.4k BTC per day to exchanges, indicating that they are not preparing for a mass sell-off.
It’s important to note that this article does not provide investment advice, and readers are encouraged to conduct their own research and analysis before making any investment or trading decisions.