Bitcoin in July: With Whales in Motion, BTC May Go This Way

  • BTC supply in profit jumped to 72.3% as of July 4 according to Glassnode data
  • Bitcoin has regained its appeal and inflation may no longer be a major threat.

Profitability is one of the main factors that investors consider before buying an asset. You will be able to find the latest Glassnode statistics on Bitcoin [BTC] fairly attractive profitability. Maybe even confusing.

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BTC’s supply in profit recently soared to 72.3%. But what does this mean for traders? Less than 50% of the supply in profit at its lowest point during the lowest point in 2022.

Now that the market has recovered, the level of profitability of BTC has also improved. But that’s not all.

The BTC offer in profit is based on prices above $30,000. In other words, around 72% of BTC acquired below the $30,000 price range is now profitable. Although this number seems high, it suggests that there was a fairly high level of trust among BTC holders.

On the other hand, it also draws attention to the potentially significant selling pressure if investors have an incentive to sell.

Will inflation finally favor BTC?

Market direction remains at the mercy of multiple market factors. Inflation has been one of the main factors influencing BTC prices in recent months. This is because the cure for inflation has mostly been to raise interest rates.

Unfortunately, high interest rates tend to discourage investment, hence the fall in asset prices. Recent data suggests that analysts expect core inflation to decline.

BTC prices have been bearish during months when inflation has been rising. This means that higher than expected inflation could lead to some selling pressure. However, this does not have to be the result since BTC was originally created as an inflation hedge. But the highly leveraged BTC positions played a huge role in triggering the selling pressure due to the sell-offs.

Recent discoveries have also revealed that BTC is no longer correlated to the S&P 500. In other words, BTC no longer follows the rules of the traditional investment market. Some see it as a chance for BTC to finally function as an inflation hedge. After all, most of the overleveraged cash has already been eliminated.

A review of address activity revealed that more whales have found BTC attractive over the past few months. For example, addresses holding at least 1,000 BTC have been increasing since early March.

BTC whale activity

Source: Glassnode

Learn more about bitcoins [BTC] price prediction 2023-24

In summary, BTC has received a lot of attention over the past few months. Market confidence has improved significantly, especially after the events of 2022 judging by profitability. So much so that even the whales got into action.

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