- Bitcoin struggles to break $9,600 after a dip to $8,900
- Investors are still bullish on Bitcoin (BTC) regardless of its recent price action
- The majority of Bitcoin holders are profitable
Bitcoin News Today – Bitcoin has still not found a way to break over the $10,000 mark. The digital currency has been trading below that major hurdle point for some time now, with a recent break below the $9,500 support mark. Nevertheless, despite the recent action of the digital currency, investors are still bullish on it, as shown by market correlations and on-chain data.
Investors Are Still Bullish On Bitcoin despite Its Recent Performance
Bitcoin recently plunged to a low of $8,900. Since then, the digital currency has been struggling to break over the $9,600 mark, and that level needs to change from hurdle to support for Bitcoin to incur more gains in the near term. Bitcoin is gradually decoupling from stocks. Nevertheless, there is still some near term correlation to traditional markets.
This became clear on June 15 when the price of the dc plunged below $9k amid some enormous losses in the futures stock market. Some analysts and investors worry that the correlation of Bitcoin with the stock market might hinder the use case narrative that BTC is digital gold or a store of value.
Bitcoin (BTC) Price Today – BTC / USD
However, some analysts and investors believe it may be a healthy sign, as it shows Bitcoin is making progress by increasing its representation across different traditional markets. Matt D’Souza – the CEO of Blockware solutions and hedge fund manager – recently said:
“What is fascinating about BTC are the multiple short-term correlations that emerge. We have witnessed strong, short-term correlations to Gold, to USD/CNY, and most recently US Equities. This signals an expanded breadth of market participants owning Bitcoin.”
The CEO believes the fact that BTC shows near term correlations to top markets and it is included in a growing range of retail and institutional portfolios shows the investment utility of BTC in hedging against near term market instability. He further explained:
“Each correlation indicates a different use case – Digital Gold, Vehicle for Capital Flight, Risk-On Asset (Disruptive Technology). The range of use cases maintain Bitcoin as an overall uncorrelated asset beyond short term intervals – a FEATURE for every portfolio.”
Bitcoin Holders Are Profiting from Bitcoin
Many digital currency investors are still profiting from their BTC positions. Data from Glassnode shows that 78.9 percent of Bitcoin holders are profitable. Another metric shows that the aggregate break-even price of Bitcoin is currently $5,776 and that the digital currency holders are making profits of 61 percent from buying BTC. A research analyst at Messari – Ryan Watkins said:
“The insights provided by an estimated cost basis can provide an interesting view into potential investor behavior. Using estimated cost basis observers can easily see at what price does a crypto asset, in aggregate, break-even.”