- The vast majority of Bitcoin holders (83.6%) have returned to profit as Bitcoin recovered from its 2022 bear market, according to Glassnode data. This is the highest percentage in 2 years.
- Bitcoin saw greater accumulation patterns during its recent rally to $37,900 compared to previous rallies this year, suggesting the crypto market is transitioning from bear to bull.
- Cryptocurrency markets showed resilience after Binance received a large fine from U.S. regulators, with only small drops in Bitcoin and Ethereum prices. This implies limited concern over the Binance developments.
A recent report from Glassnode shows that the vast majority of Bitcoin holders have returned to profit as the cryptocurrency recovered from its 2022 bear market. The data provides an optimistic outlook on the state of the Bitcoin market.
Bitcoin Supply in Profit Reaches 2-Year High
According to Glassnode’s Week on Chain report, the percentage of Bitcoin’s circulating supply currently held in profit reached 83.6% last week. This equals 16.36 million BTC and is well above the all-time mean value of 74%.
The volume of Bitcoin supply in profit has reached levels last seen two years ago when the market came off its November 2021 all-time high. However, Glassnode notes that the magnitude of unrealized profit held in these coins remains modest.
Bitcoin Accumulation Patterns
Bitcoin rallied to its highest level of the year last week, tapping $37,900 on November 16 before retreating 4% as markets cooled.
Glassnode reported that this recent surge saw greater accumulation patterns than other rallies this year. The crypto market has been in a bear-bull transition phase for 10 months as it recovers from the crypto winter. The October rally was the first break above average transition phase trading levels.
In terms of long-term holder spending and profitability, Bitcoin markets have entered an equilibrium phase which usually precedes a euphoric bull market rally.
Market Reaction to Binance News
The cryptocurrency markets have shown resilience amid news that Binance CEO Changpeng Zhao will step down after receiving a large fine from U.S. regulators.
Total crypto market capitalization fell only 3% over 24 hours. Bitcoin and Ethereum saw small drops, well within typical daily ranges. This suggests the markets are not overly concerned by the Binance developments.
Conclusion
The Glassnode data provides an optimistic view of the Bitcoin market, with the majority of holders now back in profit. Markets have also shown strength amid recent Binance news. The report suggests Bitcoin is transitioning into a bull market phase. However, it remains to be seen whether further gains will materialize.
