Markets News Report
February 08, 2024

Bitcoin’s Rally to $44,500 Benefits 90% of Holders Amid Whale Accumulation

Bitcoin's $44,500 Price Surge Benefits 90% of Holders Amid Whale Accumulation

Price of Bitcoin (BTC) has surged to $44,500, suggesting a potential resolution to the consolidation period for the decentralized cryptocurrency. On-chain indicators consistently demonstrate strength, indicating a high probability of additional gains for Bitcoin shortly, particularly with the strong support level at $43,080.

With a current price of $44,675 (at the time of writing), the rally is partially credited to the increased holdings observed in wallets containing over 1,000 Bitcoins, indicating a renewed sense of confidence among major Bitcoin holders.

According to PlanB, the creator of the Stock-to-Flow model for Bitcoin, it is currently noted that 90% of all Bitcoins are in a profitable position, marking the highest percentage since Bitcoin reached its peak in mid-November 2021. 

In the recent analysis, PlanB presented a chart featuring orange dots, symbolizing that 90% of all mined Bitcoins are currently in a profitable state. The analyst clarified that the appearance of red dots on the chart would denote 100% profitability for all Bitcoin, consistently following the current orange dots.

It was further highlighted that the metric’s shift to the “red” level of profitability would precede any likelihood of profitability dropping to 60%, as indicated by the yellow dots on the chart. 

The analysis emphasizes that, at present, only individuals who acquired Bitcoin at the 2021 price peak are experiencing losses, while all other Bitcoin holders find themselves in a profitable position.

Stock Market Performance Fuels Bitcoin Price Resurgence

Amid a robust resurgence in the overall cryptocurrency market, the price of Bitcoin has witnessed a notable increase of over 4.4% in the last 24 hours, reaching a new high of $44,700 as of the writing time, according to data from CoinMarketCap. 

This marks a significant milestone, being the first instance of the BTC price surpassing $44,000 since the launch of the spot Bitcoin ETFs last month.

According to on-chain data provider Santiment, the current resurgence is partially attributed to increased holdings observed in wallets containing over 1,000 Bitcoins. The combined holdings of these substantial wallets have reached their highest point in over 14 months, suggesting a renewed sense of confidence among major Bitcoin holders. 

Furthermore, the sustained momentum in the United States stock markets has offered additional support for risk assets, including cryptocurrencies. The S&P 500 index of the leading publicly traded companies recently concluded trading at a record high, approaching the 5,000 level.

Simultaneously, the blue-chip stocks index Dow Jones Industrial Average neared its all-time high, and the broad-based market index Nasdaq Composite moved closer to reaching its record. Given the persistent correlation between cryptocurrencies and the S&P 500, Bitcoin, Ethereum, and other cryptocurrencies are likely expected to align with the positive trajectory seen in the stock market. 

The recent surge in Bitcoin’s price, coupled with current market conditions, including its profitability and the positive momentum in the stock markets, highlights an optimistic trend for the cryptocurrency, indicating the potential for further gains in the near future.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

More articles
Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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