With the price of Bitcoin soaring past $47,000 for the first time since last month, analysts say there are now fundamental indicators of overall strength, which extend well beyond the short-term price action.
BTC, a major digital currency, surged later this week, reaching $47,146.61 at the time of writing. It almost recovered its short-term high of $49,000 shortly after the launch of several Bitcoin spot ETFs last month.
Blockchain analysts say this is no coincidence. Because there is a lot of data to support the benefits. According to Glassnode senior analyst James Check: Bitcoin’s “realization limit” A measure of Bitcoin’s market capitalization, based on the last moved prices of all coins, it has increased by $50 billion since October.
According to Check’s X post on Thursday, this reflects “actual on-chain capital inflows into Orange Coin.”
As usual, the network’s hash rate continues to rise, currently securing the network at 572 Exahash per second. This is equivalent to calculating 71.5 billion guesses for every human on the planet to mine a Bitcoin block every second.
Bitcoin’s economic throughput has also increased, with $7.1 billion settled per day in purely economic transactions. This figure is close to BTC’s all-time highs, which occurred near the price peaks of April and November 2021.
“More than 90% of all BTC units are currently held by investors at a cost basis below the current spot price,” Check wrote. “The brutal work of buying and holding Bitcoin through bears is paying off.”
Based on Bitcoin’s Market Value-Realized Value (MVRV) ratio, the average unit of BTC is currently generating a 100% profit. In USD terms, Check said the entire network is generating $448 billion in revenue. But it also contains many ancient coins that may have been lost forever.
Not all the profits go to the whales. There are currently over 1.37 million BTC held by “Shrimp” or entities that own less than 1 BTC.
Meanwhile, over 2.8 million Bitcoin addresses currently hold more than $10,000 in BTC. That’s just 68,000 addresses, an all-time high, according to Glassnode.
Lastly, Bitcoin inflows and outflows from exchanges have surged to $3 billion per day, indicating increased short-term interest in the asset. Since its launch, US Bitcoin ETFs have already absorbed more than $2.2 billion in net inflows, including $400 million on Thursday alone.
Edited by Stacey Elliott.
Stay up to date with cryptocurrency news and receive daily updates in your inbox.
