Bitcoin (BTC)’s latest market correction from the all-time peak (ATH) in 2024 of more than $108,000 represents a cooling stage, but low investor stress levels indicate that the bull market has not yet ended. Recent Report Glassnode
This report showed that BTCs held as unrealized losses currently range between 2 and 3 million coins. The amount of coins is far below the four million seen at the mid-2024 lows, indicating a more stable market.
Early bear markets historically have recorded 4 to 8 million coin underwater.
Glassnode’s data reveals that short-term holders concentrate on unrealized losses. The investors who bought Bitcoins within the past 150 days did so often when the price was at its peak.
Early in the morning on January 15, the spot price was $94,398, 9.2% higher than the short-term average cost basis, which is $88,400. The market is within the normal norms for a bull market, but there are concerns over potential selling if the price drops below the threshold.
Relative unrealized loss, a metric that compares losses not realized to the market cap, is also at around 4.3%. The rate is lower than the peak of 10% that was reached during major crises, such as 2020 COVID-19 or 2021 China Mining Ban.
Market conditions are constantly changing
The MVRV ratio (Market Value to Actual Value), an important indicator of the unrealized profits in the market is currently at 1,32. It means that the average Bitcoin holder is sitting on a 32 percent unrealized profit.
This metric suggests an underlying tone of positive sentiment despite the market’s pullback from euphoric highs.
The report also noted historical analysis showing that MVRV peaks have diminished with each successive market cycle, reflecting Bitcoin’s increasing market maturity and reduced speculative intensity.
MVRV reached a high of 8.07 in 2011, but it has dropped to 2.78 by 2024.
To adapt to Bitcoin’s maturing market structure, Glassnode has refined its MVRV Z-Score model, employing a one-year rolling window. The updated model captures the near-term dynamics of the market more accurately and pinpoints important market phases and turning point.
Bitcoin’s price is currently trading at $90,900, above the average for the past year, but still below the $112,600 bullish level. The market appears to be in a strong bullish phase despite recent declines.
This is further cemented by the flagship crypto’s positive momentum to retest $100,000 following the US CPI data release on Jan. 15. BTC traded at $99 532 as of the press deadline, according to CryptoSlate.
Furthermore, the report noted the shift in Bitcoin’s market behavior over time. A more stable market structure has been achieved by reduced volatility, an increase in institutional participation, as well as new spot demand fueled by ETFs.
Despite the current correction, the metrics suggest that Bitcoin’s market remains resilient, with a positive overall outlook.
If the market fails to recover its upward trend, it could increase pressure on those who hold short-term investments.
The Featured Data Partners
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
