According to blockchain analytics firm IntoTheBlock, Bitcoin's (BTC) recent positive price movement has put most holders in the red. Over 80% of Bitcoin holders are currently generating profits, marking the highest level of profitability since December 2021.
Bitcoin's highest level since December 2021
In a recent post, IntoTheBlock revealed that this milestone is particularly significant as it represents the highest profitability the flagship cryptocurrency has recorded in the past two years.
Market participants and expert analysts believe that BTC could continue to rise, with indicators suggesting that the market leader may soon surpass the $40,000 price zone.
One factor contributing to the orange coin's strong bullish momentum is growing optimism surrounding the possible approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
Analyst James Seyffart has brought solid optimism to the crypto community in an update by predicting a possible approval order for the Bitcoin Spot ETF between January 8th and 10th, 2024.
According to Galaxy Digital CEO Mike Novogratz, the development could pave the way for Bitcoin to rise above its 2021 all-time high.
Novogratz predicts a return to $69,000, Bitcoin's previous all-time high, within a year of the SEC's approval of spot BTC ETFs.
Bullish Bitcoin price predictions
In addition to the positive outlook, analysts at Matrixport predict that Bitcoin will reach $60,000 by April 2024 and double this mark by the end of the year. They attribute this bullish forecast to historical patterns, pointing out that previous bull markets have followed bear markets and 2023 is the first bullish year in a series of cycles.
Matrixport’s estimates are consistent with the belief that the recent Bitcoin bear market observed in 2022 has come to an end. The analysts claim that Bitcoin's 123% increase in value in 2023 signals the end of the bear market and reflects patterns observed after previous market downturns.
Whales are accumulating Bitcoin
Meanwhile, major corporate giants are making significant moves in the Bitcoin space. MicroStrategy, led by Michael Saylor, recently invested $593 million in Bitcoin and acquired an additional 16,130 BTC at an average price of $36,785 per Bitcoin. This brings MicroStrategy's total Bitcoin holdings to over $6 billion at current prices.
This move by MicroStrategy is evidence of increasing interest in Bitcoin from institutional players, further reinforcing the positive sentiment surrounding the cryptocurrency market.
Current BTC price level
Currently, the price of BTC is $38,800, with a 24-hour trading volume of over $13 billion, according to data from CoinGecko. The Relative Strength Index (RSI) on the weekly time frame is at 91, indicating strong market momentum.
According to CoinGecko, Bitcoin recently rose 2.9%, rising from around $37,800 to almost the $39,000 mark.
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