- According to a report published by blockchain analytics firm IntoTheBlock on Friday, over 81.35% of all Bitcoin holders are currently in a profitable position.
- Firstly, there is considerable optimism in the Bitcoin (BTC) community regarding the approval of a Bitcoin Spot Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
- There have been other positive developments for the BTC community as well, as the total fees on the Bitcoin network dropped by 50% last week.
ETF expectations boost positive sentiments: According to IntoTheBlock reports, more than 81.35% of Bitcoin holders are currently in profit.
81% of Bitcoin Holders in Profit
Last week, Bitcoin drew significant attention with a notable 2.58% increase within seven days. During this period, the leading cryptocurrency surged from trading around $37,800 to nearly surpassing the $39,000 price level. Following this positive price movement, Bitcoin recorded impressive metrics that could increase investor interest in the coming weeks.
According to a report published by blockchain analytics firm IntoTheBlock on Friday, over 81.35% of all Bitcoin holders are currently in a profitable position. This indicates the highest level of profitability experienced by BTC investors since December 2021, when the token was valued at over $50,000.
Interestingly, there is a likelihood of further profitability for Bitcoin, and several factors indicate that the market leader could soon surpass the $40,000 price zone. Firstly, there is considerable optimism in the Bitcoin (BTC) community regarding the approval of a Bitcoin Spot Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). On Friday, Bloomberg analyst James Seyffart added excitement to the crypto community by predicting that the potential approval order would come between January 8 and 10, 2024.
Therefore, anticipating the significant institutional demand that a spot ETF could bring to the BTC market, investors are likely to start increasing their Bitcoin assets in the coming weeks, leading to a potential price increase.
Additionally, the statements from the U.S. Federal Reserve Chairman Jerome Powell indicating that there is likely to be no interest rate hike in the coming months are a positive development. If this occurs, it would allow Bitcoin, as well as other digital assets, to be less exposed to the increasing interest rates that deter investments in high-risk assets.
However, despite these positive indicators, it is essential to note that the crypto market is subject to many forces, and all investors are advised to conduct proper research before participating in the market.
Other Positive News for the BTC Community
There have been other positive developments for the BTC community as well, as the total fees on the Bitcoin network dropped by 50% last week. According to IntoTheBlock, this development resulted from a dramatic decrease in transactions related to the Ordinals protocol.
The Ordinals protocol, launched in January 2023, allows the creation of unique non-fungible tokens (NFTs) on the Bitcoin network, known as BRC-20 tokens. Similar to local NFTs on the Ethereum network, high interest in Ordinals results in high network fees, while low interest leads to lower fees.
At the time of writing, Bitcoin is trading at $38,750, experiencing a 0.17% decrease in the last hour. Simultaneously, the asset’s daily trading volume increased by 4.97% and is valued at $20.37 billion.
