Within the last week, Bitcoin (BTC) secured an all-time high above $109,000 as Billionaire Republican Donald Trump became the forty sixth US President. Nevertheless, the premier crypto asset has since declined, with its current market price now below $105,000.  Interestingly, current data on Bitcoin holders’ profitability backs the bullish structure of the market indicating little potential for bearish sentiment.

Bitcoin Holders Reap Huge Profits: Long-Term Investors Up 70%

Within the crypto market, an asset’s holders’ profitability based on their realized price i.e. average cost of acquisition,  is a crucial metric in predicting investors’ sentiments. In a Quicktake post on CryptoQuant, an analyst with the username Crazzyblockk has provided insight on Bitcoin holders’ profitability across three major tiers.

The analyst states that data from CryptoQuant reveals that BTC long-term holders i.e. investors of greater than 6 months are presently experiencing a mean profit of 70%. Meanwhile, short-term holders i.e. holding lower than six months are seeing a moderate 14.5% profit, reflecting their ability to accurately navigate recent market conditions.

Finally, despite limited exposure, latest investors i.e. holders of Bitcoin for lower than 1 month are experiencing a small profit of 4.7%. Going by this data, no tier of BTC holders are currently facing significant losses reducing the potential of a widescale market sell-off.

Importantly, while profitability percentages have shown a minor decline relative to previous weeks and months, the BTC market is unlikely to slide right into a bearish phase so long as short-term holders and latest market entrants proceed to record substantial profits.

The relevance of those tiers of Bitcoin holders stems from ongoing distribution by Bitcoin long-term holders who’re currently taking profit. For instance, popular crypto analyst Ali Martinez reports that Bitcoin long-term holders shedded 75,000 BTC previously week. 

These substantial amounts of Bitcoin offloaded by long-term holders are purchased by short-term holders and latest investors, mopping the effect of any potential selling pressure available on the market. Subsequently, if these investors begin to incur losses, it could trigger a robust bearish pressure on BTC.

BTC Price Overview

At press time, Bitcoin trades at $104,737 reflecting a 0.09% gain within the last day. The maiden cryptocurrency is down by 0.46% on the weekly chart. Nevertheless, a price gain of 8.71% throughout the last 30 days reflects the present bullish structure of the BTC market.

Following the inauguration of Donald Trump, expectations for BTC are more likely to grow higher considering the brand new US President’s pro-crypto manifesto. To date, President Trump’s administration appears to be off to a promising start, marked by the SEC’s repeal of the controversial SAB 121 and an executive order exploring the establishment of a national digital asset stockpile.