Bitcoin broke through $13,000, and the fundamentals on the chain remained strong, deviating from the trend of the traditional financial market.
Original title: “Glassnode 丨 Are 98% of UTXOs in BTC profitable? 》
Translation: Olivia
Written by: Liesl Eichholz
Bitcoin saw some impressive gains in the 43rd week, exceeding $13,000, and remained at this price level until this week. The fundamentals on the chain are still strong and seem to deviate from the trend of traditional financial markets.
Bitcoin market health
Bitcoin’s gain in the 43rd week reached 13.7%, starting this week from $11,450 and finally closing at $13,020. After rising above 13,000 US dollars on Wednesday night, BTC successfully maintained this price level, occasionally falling to 12,000 US dollars during the period, but quickly rebounded.
During the 43rd week, the fundamentals on the Bitcoin chain kept rising with the price of BTC. GNI rose by 5 points overall, from 61 points last week to 66 points. This increase was due to the rise in the Internet health and liquidity index, while the sentiment index declined slightly.
Internet health rose by 4 points this week, and the final score was 71 points. Due to the increase in the number of active entities, the number of new entities, and the transaction rate on the Bitcoin blockchain, the network growth and network activity subcategories have corresponding benefits.
There was an 8 point increase in liquidity, which was 59 points at the end of the week. Due to the decrease in exchange inflows, trading liquidity dropped by four. But transaction liquidity increased by 12 points, and this increase benefited from the high chain transfer volume throughout the week.
We can see that the sentiment index dropped by 1 point, bringing its score to 69 points in week 43. Although saving behavior has increased, a slight decline in investor sentiment offset these gains.
Glassnode guide
In week 43, the guideline remains at the bullish Regime 1 again. It has been in the green zone for 22 consecutive weeks, which indicates that BTC’s on-chain fundamentals are strong and the price trend is improving.
In the past week, the price of BTC has risen in line with the trajectory of the stock price, but the increase in stocks is small while the price of BTC has soared. This represents the biggest deviation between Bitcoin and the stock market since July this year.
BTC deviated from the SPY price trend in July this year, and then returned to a closely related state-but now it seems to have deviated again (Source: TradingView)
In previous reports, we have discussed the possibility of decoupling from the traditional financial market–although it is too early to judge whether the deviation of the past week indicates a long-term decoupling trend, it is a problem for BTC. Hopeful signal.
Altcoin overview
Relative to BTC performance
The performance of BTC in the 43rd week is remarkable. The performance of mainstream altcoins is relatively poor, and no currency can exceed the increase of Bitcoin.
The top ten best performing altcoins are LINK, which only fell 1.2% relative to BTC. At the same time, BNB has fallen by 13.6% relative to Bitcoin, and is the only mainstream altcoin whose dollar value has also fallen in the past week.
Relative to USD performance
BNB fell by 1.7% in USD value in Week 43. At the same time, despite the poor performance of BTC, the prices of other top 10 altcoins have risen.
The dollar value of LINK has risen by 12.3%, while ETH has risen by 8%. The rise in the price of BTC seems to have stimulated other parts of the market to increase in value, increasing its value by 7.9%. At the same time, the rise of BTC has rebounded, accounting for more than 60% of the total market value of cryptocurrencies.
98% of Bitcoin UTXOs are profitable
With Bitcoin’s recent rise to more than $13,000, UTXO’s profitability currently reaches 98%, a value that has not been reached since December 2017. This high value usually occurs during the BTC bull market, which means that almost all UTXOs are created when the price is lower than the current price.
If we assume that UTXO represents the sale/buy of BTC in general terms, this means that 98% of BTC transactions have been profitable so far.
In fact, BTC has remained above 13,000 US dollars this week, which means that there is no extreme selling pressure at this price; most holders have not sold their BTC even though they are profitable. Indicates that they are likely to expect further price increases.
Source link: mp.weixin.qq.com
