Key Points
- Despite recent price fluctuations, 87% of Bitcoin holders remain profitable.
- MicroStrategy’s $786 million Bitcoin purchase and potential sell-off pressure from the German government are impacting the market.
Despite recent struggles to surpass the $70k mark, a significant portion of Bitcoin holders are still experiencing profits. This is true even with the recent purchase of 11,931 Bitcoin, valued at $786 million, by MicroStrategy using the proceeds from a recent convertible notes offering. The slight increase in Bitcoin’s price to above $65,000 ended with the leading cryptocurrency falling back under $64,000.
Data from IntoTheBlock reveals that 87% of Bitcoin holders are still reaping profits. The majority of holders are in a profitable position, having acquired Bitcoin at average prices that are significantly lower than the current rate.
Bitcoin’s Struggle for Upside
Bitcoin, which reached an all-time high of over $73k in March, has been struggling in the past few weeks. Bitcoin’s price fell to lows of $56k in early May, before rising to above $71k, with rejections above this level on May 21 and again in early June.
On Friday, both Bitcoin and Ethereum’s prices fell by more than 3%, to below $64k and under $3,500 respectively. Bitcoin is currently trading around $63,700, while Ethereum is around $3,503. Both cryptocurrencies have seen declines over the past 30 days, with Bitcoin down 8% and Ethereum down 6%. These performances have occurred amidst various negative catalysts.
Bitcoin Sell-Off Pressure: The Catalyst?
Bitcoin ETFs are seeing net outflows as miners continue to sell post-halving. According to on-chain data, miners have sold more than 30,000 Bitcoin in June. Bitcoin analyst Willy Woo suggests that miner capitulation will likely remain a key downside factor for Bitcoin in the short term.
In addition to miner capitulation, this week has seen increased sell-off pressure due to potential dumping by the German government. Earlier this year, German police confiscated 50k Bitcoin, worth $2.1 billion at the time, from the pirated film site “Movie2K”. The surge in Bitcoin’s price pushed the value of these coins to over $3 billion. A Bitcoin address linked to this seizure has moved over $110 worth of Bitcoin to exchanges, including Kraken and Bitstamp.
