As Bitcoin Price Rises, These On-Chain Signals Flash Bullish: Glassnode

BTC, the leading digital currency, surged late this week, reaching $47,146.61 at the time of writing. It has now almost reclaimed its short-lived high of $49,000 soon after the launch of several spot Bitcoin ETFs last month.

Blockchain analysts say it’s no fluke: There’s plenty of data to support the gains. According to Glassnode lead analyst James Check, Bitcoin’s “Realized Cap,” a measure of Bitcoin’s market capitalization based on the price at which all coins last traded, has increased by $50 billion since October.

This reflects “real on-chain capital inflows into the orange coin,” according to a Check X post on Thursday.

As usual, the network’s hash rate also continues its infinite climb upwards, now protecting the network with 572 Exahash per second. This is the equivalent of every human on Earth calculating 71.5 billion attempts to mine a Bitcoin block, every single second.

Bitcoin’s economic yield is also increasing, standing at $7.1 billion per day in purely economic transactions. The figure is close to BTC’s all-time highs that occurred closer to the price peaks in April and November 2021.

“Over 90% of all BTC units are now held by investors costing less than the current spot price,” Check wrote. “The brutal hard work of buying and holding Bitcoin through a dip is paying off.”

Based on Bitcoin’s market value to realized value (MVRV) ratio, the average unit of BTC is currently 100% profitable. In dollar terms, Check said the entire network boasts a profit of $448 billion, although that also includes many ancient coins that are likely lost forever.

Not all of these profits will even go to whales: there are now more than 1.37 million BTC held by “Shrimps,” or entities that own less than 1 BTC.

Meanwhile, over 2.8 million Bitcoin addresses now hold more than $10,000 in BTC. According to Glassnode, this is just 68,000 addresses away from the new all-time high.

Finally, Bitcoin inflows and outflows from exchanges have increased to as much as $3 billion per day, showing growing short-term interest in the asset. Since U.S. Bitcoin ETFs launched, they have already absorbed more than $2.2 billion in net inflows, including $400 million on Thursday alone.

By Stacy Elliott.