Bitcoin [BTC]: The recent price jump has brought gains to holders, a new report shows

• At press time, BTC was trading at price levels last seen in August 2022.
• The price rally since the beginning of the year has helped many holders to profit.

Strong gains between January 20th and 22nd fueled Bitcoin [BTC] up over 2% during intraday trading on Jan. 23. This caused the leading coin to trade at levels last seen in August 2022, data from CoinMarketCap showed.

Read Bitcoins [BTC] Price prediction 2023-2024

With BTC currently exchanging hands above the $23,000 price mark, in a new report, leading on-chain data provider Glassnode noted changes in behavior of new investors (short-term holders), long-term holders and miners that could indicate profit-taking after a significant one declining trading period in 2022.

On-chain metrics point to one thing

According to the report, an assessment of BTC’s Percent Supply in Profit metric found that the year-to-date price surge represented one of the sharpest gains in profitability compared to previous bear markets.

According to Glassnode, in the current bear market that started in November 2021, BTC’s Net Realized Gain and Loss metric has suffered two major capitulation events (Terra-Luna and FTX collapse), resulting in net losses of 2.9% and 3.7% the market cap of the king coin per week.

However, with a spike in BTC profitability over the past few weeks, Glassnode noted that the market has shifted into a state of profit dominance, which it described as follows:

“Promising sign of healing after severe deleveraging pressures in second half of 2022.”

Source: Glassnode

To determine what new BTC investors were up to, Glassnode also evaluated the coin’s “Percentage of Short-Term Holder Supply in Profit” metric. It turns out that Bitcoin’s price recent surge to $23,000 has taken this metric above 97.5% gain for the first time since the all-time high set in November 2021.

However, investors should remain cautious because when more than 97.5% of the supply of short-term holders are in profit, those players are more likely to exit at break-even or profit, Glassnode said.

Source: Glassnode

To sustain the current rally, Glassnode said:

“Hence, the sustainability of the current rally can be viewed as a balance between inflow and new demand being injected to meet the supply being pulled from investors’ wallets by these higher prices.”

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As for long-term holders of the king coin, the recent jump in price has caused long-term holdings to surge following the conviction shock that caused many of them to disperse their BTC holdings when FTX collapsed. Glassnode says:

“Supply held by HODLers has shifted from a -314,000 BTC/month contraction following the FTX collapse to an expansion at a +100,000 BTC/month rate.”

Source: GlassnodeFinally, as for the miners operating the BTC network, an analysis of the Puell Multiple revealed:

“That relative miner revenue is up 254% compared to early January underscores just how immense the financial stress the industry has been during the bear market.”

Source: Glassnode

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