Bitcoin [BTC] Keepers cheer for the bull run, but is there more to the story?
- Bitcoin’s latest bull run is generating profits for long- and short-term investors.
- An increase in interest and high MVRV ratio can affect BTC’s price.
The recent bull run in the crypto space has brought all eyes to Bitcoin [BTC], with its soaring prices generating profits for both long-term and short-term investors. According to new data provided by Santiment, holders across all spectrums have turned profitable for the first time in 14 months, leading many to believe that a bull run for the sovereign is looming.
📈 Average return for #Bitcoin among long-term hodlers and short-term “new money” has burst into positive territory for the first time in 14 months. Our latest insight covers how this key indicator intersection is valuable for measuring the next #running of the bulls. pic.twitter.com/50z1LPmXcD
— Santiment (@santimentfeed) March 20, 2023
Bitcoin holders become active
As a result, addresses with more than 10 BTC have started to accumulate large amounts of the cryptocurrency, and other investors are also showing interest in the Bitcoin network, causing activity on the network to increase. Artemis’s data shows that Bitcoin is the third largest network in terms of active addresses at press time.
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The amount of Bitcoin’s supply held by entities with less than 10 BTC continues to reach new highs
Over time, the supply will continue to become more distributed, dispelling any arguments against Bitcoin regarding supply concentration pic.twitter.com/piXbdT8sS4
— Will Clemente (@WClementeIII) March 20, 2023
Inscriptions on the BTC network and the resulting Ordinals NFTs have also contributed to the increase in interest in the Bitcoin network. These factors have helped fees accumulated on the network soar, reaching a 15-month high of $37,452.54 according to Glassnode’s data.
Proceed carefully
Despite these positive developments for BTC, things could come crashing down at any moment. The high MVRV ratio suggests that many holders at press time may be encouraged to sell Bitcoin for a profit, potentially depressing its price.
Source: Sentiment
Furthermore, miner incomes have begun to decline. If miners continue to lose profits, they may be forced to sell their BTC to cover losses, which may also drive down the price of the cryptocurrency. Other factors such as hashrate, difficulty, and the upcoming Bitcoin halving will also play an important role in the miner’s decision-making process.
Read Bitcoin Price Prediction 2023-2024
Source: glassnode
Investors should pay close attention to these developments, as they could have a significant impact on the price of Bitcoin. Although the current trend is positive, the state of Bitcoin can be unpredictable and it is always important to exercise caution when investing. Especially in times of high speculation.
