With a 22 percent weekly increase, the price curve of Bitcoin (BTC) has taken the psychologically important mark of $21,000 and radiates optimism. After all, when the crypto exchange FTX had to file for bankruptcy at the beginning of November 2022 and domino effects set in, Bitcoin slipped below $20,000 and the markets appeared nervous. Now, however, the crypto analysts at Glassnode, for example, are already asking “Is Bitcoin back?” in their current market report and providing arguments why BTC can continue to expect an upswing.
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According to the report, one important detail is that Bitcoin miners end up in the profit zone again at the current prices
Glassnode calculates an average of $18,800 that Bitcoin miners have to include as costs for mining one BTC. The drop in Bitcoin prices had already caused the end for individual miners and forced many miners to sell their “new” BTC immediately in order to be able to pay their operating costs. So at the current Bitcoin prices, miners can make profits again and the selling pressure on them is decreasing. This has the potential to hedge Bitcoin’s positive trend.
Glassnode further pointed out that Bitcoin investors are now back in the black on average. They calculated a BTC price of $19,700, which is where the average entry price was across all Bitcoin investors. For short-term investors, the entry price over the last 155 days was therefore $18,000 and the potential profit was even higher. Only investors who have been betting on HODL for longer than 155 days are still in the red for now, with an average paid Bitcoin price of $22,4000. But in general, Glassnode concludes from the current situation with the experience of early Bitcoin cycles that it indicates a turn from bear to bull market.
Conclusion: Bitcoin in an uptrend – market environment positive
In the wake of the cryptocurrency Bitcoin, all important altcoins have also turned positive recently. As a reason for this, observers also cite the start of the legal processing of the FTX bankruptcy and the associated hope that the damage can be limited. Macroeconomically, the further slowdown of the US inflation rate is seen as positive. Under these circumstances, the chances seem good that the recent rally in Bitcoin will continue.
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First published in BLOCK-BUILDERS.DE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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