Bitcoin Investors Are Back in Profitability – Does this Mean the Bear Market Capitulation Phase is Over?
Bitcoins. Source: Adobe In wake of a month of explosive upside, “Bitcoin is consolidating above the on-chain cost-basis of several cohorts,” crypto analytics firm Glassnode said in their latest weekly on- Chain news letter. As a result, this has put “the average BTC holder into a regime of unrealized profit, and demonstrates a potential turning of the macro market tides is underway,” Glassnode claims. One way of representing this return to profitability is via a 7-Day Exponential Moving Average (EMA) of Glassnode’s Realized Profit/Loss Ratio indicator. “We can observe the first sustained period of profitability since the Apr 2022 exit liquidity event, suggesting initial signs of a change in profitability regime,” says Glassnode referring to the chart. According to Glassnode, if the Realized P/L Ratio (7-Day EMA) falls back below 1.0 with prices at current levels, that would indicate a large increase in realized loss dominance...