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Despite Bitcoin price struggling to break higher since the latest rejection from the $70k mark, the vast majority of BTC holders are still profitable.
Although MicroStrategy purchased 11,931 BTC worth $786 million using the proceeds from a recent convertible notes offering, the slight uptick in Bitcoin price to above $65,000 has ended with the flagship cryptocurrency back under $64,000.
Despite this, data from IntoTheBlock shows 87% of BTC holders are still in profit. Most holders are above water having acquired BTC at average prices that are relatively lower compared to current level.
On-chain data shows 46.72 million addresses are currently in the money, while 5.68 million, or nearly 11% are holding their coins at a loss. Only 2.67%, or 1.44 million addresses are at the money having acquired BTC at average prices that correspond to the current trading price.
Bitcoin price struggling for upside
Bitcoin, which hit an all-time high above $73k in March, has floundered these past few weeks. BTC fell to lows of $56k in early May, before spiking to above $71k – with a rejection above this level on May 21 and again in early June.
On Friday, Bitcoin price, as well as Ethereum’s, slumped more than 3% to below $64k and under $3,500 respectively.
BTC price is currently around $63,700 while ETH changes hands near $3,503. The benchmark cryptocurrency is down 8% in the past 30 days and Ether has declined 6%, performances that have come amid a confluence of downside catalysts.
With sentiment leaning bearish, IntoTheBlock analysts see the $61.9k to $63.8k range as a potential key suppport area.
Bitcoin’s trend continues to lean bearish, currently hovering just above a critical demand zone. Keep an eye on the 61.9k to 63.8k range for potential support https://t.co/SzLyfHHNHM pic.twitter.com/gVtDu8DZj7
— IntoTheBlock (@intotheblock) June 21, 2024
BTC sell-off pressure: what’s the catalyst?
As spot Bitcoin ETFs see net outflows, miners have continued to sell post-halving. Per on-chain data, miners have sold more than 30,000 BTC in June.
Bitcoin analyst Willy Woo, in a comment shared via X on Friday, says miner capitulation will likely remain a key downside factor for BTC in the short term.
“I’ll break it down in simple terms. When does Bitcoin recover? It’s when weak miners die and hash rate recovers,” Woo posted.
In the analyst’s view, miner capitulation is taking longer than historically seen over the past two post-halving periods likely due to ordinal inscriptions that have boosted miner profits.
Meanwhile, this week has seen increased sell-off pressure amid potential dump by the German government. Early this year, German police confiscated 50k BTC worth $2.1 billion (at the time) from pirated film site, “Movie2K”. Bitcoin’s price surge pushed the value of the coins to over $3 billion.
This BTC address linked to the seizure has moved over $110 worth of Bitcoin to exchanges,including Kraken and Bitstamp.
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