Glassnode Bitcoin Holders Enjoying 120 Average Unrealized Profits Yet Boredom Sentiment Still Dominating the Market

Glassnode Bitcoin Holders Enjoying 120 Average Unrealized Profits Yet Boredom Sentiment Still Dominating the Market

Glassnode Bitcoin Holders Enjoying 120 Average Unrealized Profits Yet Boredom Sentiment Still Dominating the Market

Blockchain data analysis firm Glassnode’s analysts stated in their latest Weekly On-Chain Report that Bitcoin holders have an average unrealized profit of about 120%, but “investor boredom” still dominates the entire market.

Over the past few weeks, the price of Bitcoin has essentially been in a sideways trend, hovering around $65,300 at the time of writing, yet investor profits remain considerable during this period of volatility. Glassnode found that the current average unrealized profit per Bitcoin holder is about 120%, similar to previous market highs. Furthermore, with the market consolidating in this trading range, over 87% of Bitcoin’s circulating supply is currently in a profitable state.

Source:
Glassnode

Glassnode’s report points out that after reaching new all-time highs, the market typically needs sufficient time to consolidate and digest the introduced supply surplus. As equilibrium is established, this will lead to a decrease in realized profits and selling pressure. Analysts state that while this has reduced overhead resistance in the market, it has not yet translated into significant price momentum.

Source:
Glassnode

Glassnode attributes the price consolidation to “investor boredom and apathy” and notes that the scale of Bitcoin network’s transaction volume has slowed down, indicating a decrease in speculative interest. Glassnode concludes in the report:

Potential supply pressure on altcoins
Many altcoins are experiencing significant declines, with the average price of cryptocurrencies falling by 50% from the 2024 peak, according to digital asset research firm 10x Research’s analysis of the top 115 cryptocurrencies. 10x Research founder Markus Thielen believes that unless the liquidity of cryptocurrencies improves, these losses will become more severe.

Thielen mentioned that Bitcoin and Ethereum (ETH) have performed relatively well during this period, with declines of about 11% and 13%, respectively, which may benefit from smarter traders converting other altcoins into these two currencies, a trend that has occurred in the past two cycles.

Cryptocurrency analyst Miles Deutscher stated that the number of tokens in the cryptocurrency market is more than 5 times higher than during the peak of the 2021 bull market, posing a major issue and potentially contributing to the struggles of cryptocurrencies even as Bitcoin hits new all-time highs. He wrote on the X platform:

“Unchained” cites data from Token Unlocks, reporting that in the next month, it is expected that over 40 cryptocurrency protocols will unlock tokens worth approximately $740 million.

In Deutscher’s view, token dilution is akin to currency inflation impacting traditional financial assets, significantly reducing the purchasing power of cryptocurrencies. He pointed out that some possible solutions to this issue may involve enforcing better token distribution at the exchange level and prioritizing more token allocations to genuine user communities.

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