After payment processor PayPal (Paypal) announced its support for cryptocurrencies, the price of Bitcoin rose sharply on Wednesday. According to Glassnode’s “% of UTXO in profit” statistics, the surge in value has pushed a large number of Bitcoin holders into a profitable state. According to current data, 98% of all Bitcoin UTXOs are at the profit level set three years ago in December 2017.
After Paypal announced the news, on Wednesday, October 21, the price of Bitcoin (BTC) closed at a high of $13,184 per coin. During the evening trading session, the on-chain research and analysis company Glassnode tweeted the amount of unspent transaction output (UTXO) of bitcoin that was profitable. UTXO refers to the amount of unspent Bitcoin held by someone, which is only stored in the Bitcoin wallet.
“There are currently 98% of Bitcoin UTXOs that are profitable,” Glassnode Tweet. “This level has not been seen since December 2017, which was typical in previous BTC bull markets.”
Since then, prices have fallen a lot, but the price of Bitcoin (BTC) has still risen by 4.3% in the past seven days. Long-term holders have increased by 72.4% in the past 12 months, 34.9% in the past 90 days, and 22% in 30 days. Glassnode’s on-chain statistics report details that the sub-index, which measures investor sentiment, “increased 70 points” at the end of the week.
Many cryptocurrency analysts and traders believe that Bitcoin’s current price range is a key indicator of progress. In addition, the dominant level of BTC-the market capitalization measured by all more than 7,000 crypto assets-has risen to 63.2%. Alex Kuptsikevich, senior financial analyst at Fxpro, believes that Bitcoin is testing key macro levels.
Kuptsikevich wrote in a report to investors: “At current levels, Bitcoin is testing cyclical highs.” “Since the beginning of 2018, it has not been able to gain a foothold above the $12,000 level. Equally important is that indicators such as RSI are still at new highs, far from exceeding the overbought state, which indicates the huge potential for further growth. If this week’s closing price exceeds $12,800, it will be the highest level in two and a half years. This will open a direct path for direct growth to the historical high of $20,000 three years ago.”
Bitcoin’s breakthrough of the two rounds of $12,000 and $13K opened the door for further growth. Current price dynamics have caused the token to retest the July 2019 peak, which was the highest point of the rebound. Nowadays, purchase transactions are conducted under the background of people’s confidence that Bitcoin has more and more supporters in the traditional financial world.
Eric Demuth, the co-founder and CEO of Bitpanda, believes that in general, cryptocurrencies are beginning to “establish their position as a trusted asset class in the global financial market, such as gold and stocks. “. Demuth believes that the Paypal support announced on Wednesday is just the beginning, because he believes that more large players will join the cryptocurrency party.
“2020 shows that cryptocurrencies will continue to exist,” Demuth explained. “Institutional capital has flowed in, and the number of new retail customers using cryptocurrencies has reached a record level. I’m sure we will see more big companies like Paypal join the party in 2021.”
What do you think of the high proportion of Bitcoin UTXOs that are profitable? Tell us what you think in the comments section below.
Picture Credits: Shutterstock, Pixel, Wiki Commons, Glassnode
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