Bitcoin Investors Are Still Quite Profitable Despite the Sideways Price Action, Glassnode Report Finds

The price of bitcoin has traded largely sideways over the last few weeks, with the asset hovering around $65,300 at the time of writing.

Bitcoin’s price has largely traded sideways over the last few weeks, with the asset changing hands for around $65,300 at the time of writing. Despite all the choppy price action, bitcoin investors are still deep in the green on average.

According to the latest report from crypto analytics firm Glassnode, the average coin currently holds an unrealized profit of around 120%, which is typical of previous markets trading around an all-time high.

Impressively, over 87% of bitcoin’s circulating supply is currently being held at a profit as markets consolidate within this trade range.

The report also highlights a recent reduction in sell-side pressure and profit-taking behaviour among market participants. While this has brought down the overhead market resistance, it is yet to translate into significant upward price momentum.

Interestingly, Glassnode attributes the sideways price action to “investor boredom and apathy,” noting that there has been a slowdown in the scale of volume transferred on the Bitcoin network, which implies a lower appetite for speculation.

“An equilibrium in both the demand and sell-side appears to be established, resulting in relatively stable prices, and a notable lack in volatility,” said Glassnode.

“This stagnation in market movement translates into a degree of boredom, apathy, and indecision by investors.”

With the recent spike in memecoin trading, it is fair to say that this segment of the market has commanded a lot more attention from crypto investors of late.

However, according to crypto analyst Miles Deutscher, the fact that we now have more than 5 times the number of tokens during the bull run peak in 2021 is a big problem, and potentially a reason why crypto has struggled despite bitcoin hitting a new all-time high.

“The more tokens that launch, the more cumulative supply pressure on the market. And this supply pressure “stacks” Many projects from 2021 are still unlocking, with supply “stacking” across every subsequent year (2022, 2023, 2024),” said Deutscher on X.

Over the next month, more than 40 crypto protocols are set to unlock an estimated $740 million in frozen tokens.

In Deutscher’s view, token dilution is comparable to the effects of inflation on traditional financial assets, which reduces crypto purchasing power across the board. He notes that some ways to address this issue could be better token distribution enforced at the exchange-level and prioritizing a bigger allocation to a community of genuine users.

“The market needs to give retail a reason to come back. This, at least, fixes one half of the problem,” he said.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-investors-profitable-sideways-price-action-glassnode-report.html

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