Bitcoin Price Boom: Will New Investments Sustain The Uptrend?

IconCryptoNewsTerminal Staff21 Jul, 2024

cryptonews.jpg

Bitcoin Price Boom: Will New Investments Sustain The Uptrend?

CryptoQuant contributor Crazzyblockk offers insights into the recent Bitcoin price surge, highlighting the role of short-term investors and the potential impact of new funds entering the market. According to Crazzyblockk, short-term Bitcoin holders (those holding for less than six months) are showing signs of relief due to the price rally. The continuation of this uptrend, however, will hinge on the inflow of fresh capital. The Market Value to Realized Value (MVRV) ratio for short-term investors is currently above 1, indicating that the current price exceeds their average purchase price. This suggests that they are in profit. The Profit and Loss (PNL) indicator reveals an average profit of 5% for short-term investors, with those holding for less than a month enjoying an even higher return of 7.5%. The Spent Output Profit Ratio (SOPR) shows that holders who have held for less than six months experienced losses during the recent adjustment but have since recovered profitability. This aligns with the broader market recovery. In conclusion, while short-term investors are currently profiting from the Bitcoin price rise, the sustainability of this trend will be influenced by the influx of new investments.

Related News