Glassnode data shows that in this wave of market growth, the profit ratio of circulating Bitcoin has increased from about 75% to the current 95%. This significant increase reflects the strong performance of Bitcoin’s price. If we specifically calculate from the previous market low, which was around $18,000, the profit ratio of Bitcoin has increased by 50% from the original 45%.
On the other hand, data from INTO THE BLOCK shows that the balance of Bitcoin held by whale holders has shown strong growth this year. INTO THE BLOCK expects this trend to continue as institutional investors now have easier access to Bitcoin with the introduction of Bitcoin spot ETFs.
Cryptocurrency analyst Marcel Pechman recently wrote that according to market data, investors expect S&P 500 companies to achieve a future profit growth of 10.9%, significantly higher than the 3.8% in 2023. This indicates that in the current economic environment, investors may have reduced interest in alternative assets such as Bitcoin.
Pechman analyzes that for Bitcoin to reach a new all-time high of $70,000 from the current $52,000, it would need an additional increase of 34.5%, which means its market value would increase by approximately $350 billion. However, as long as the US dollar continues to depreciate, it is still possible for Bitcoin to rise above $70,000.
However, Pechman mentions that such a significant price increase is unlikely to occur before the Bitcoin block reward halving in April. The halving usually has a significant impact on the Bitcoin price, but before that, the market may not see substantial price movements.