Despite the market’s sharp correction, key metrics remain optimistic. Bitcoin (BTC) has fallen to the lower end of the $65,000 range, while Ethereum (ETH) trades around $3,500.
According to Glassnode’s latest report, Bitcoin’s price volatility has led to “sideways movement, often interpreted as investor apathy.”
However, over 87% of Bitcoin’s circulating supply is still held at a profit, with investors enjoying an average unrealized gain of 120%.
Jerrymusa.com reports that this trend is evident in the “Market Value to Realized Value (MVRV) ratio,” which indicates an ongoing uptrend with stabilization within a standard deviation range, highlighting “significant investor profitability.”
Bitcoin Holders Optimistic
Following “substantial profit-taking, especially from long-term holders,” the market needs time to absorb the excess supply.
This consolidation phase reduces sell pressure and realized profits, maintaining a balanced market condition. Although trading volumes have declined on the network and major exchanges, most coins moved are still profitable, with an average realized gain “significantly higher than losses.” This benefits “range traders and arbitrageurs more than those seeking directional moves.”
The futures market reflects a similar trend, with growing open interest exceeding $30 billion, close to its previous all-time high.
A large part of this open interest is attributed to “demand-neutral strategies like cash-and-carry.” Institutional investors are increasingly active, as seen in the rising open interest on the CME Group exchange, currently at $10 billion.
However, like the spot market, futures trading volumes have also decreased, indicating “reduced speculative activity and market indecision.”