$BTC: Massive accumulation sees 13% of Bitcoin supply return to profit

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Around 13% of the top cryptocurrency supply in circulation has returned to a profit state, meaning it was acquired below the current price of Bitcoin ($BTC), which at the time of writing is slightly over $18,000.

According to data from on-chain analytics firm Glassnode, after Bitcoin’s recent rally to break above the $18,000 mark, a significant percentage of cryptocurrency supply has returned to profit in a move that helps confirm that a large volume of $BTC was acquired between $16.5k and $18.2k.

The accumulation could have a significant impact on the future performance of cryptocurrency prices, as the region could now turn into a strong support zone in which demand far exceeds supply. Checkmate, lead on-chain analyst at Glassnodes, commented:

Simple #Bitcoin tools like Supply in Profit yield a massive benefit to those who pay attention.

What we are looking at is a relatively small price change (~10%), but a whopping 13% of all coins returning to profit.

This means a massive surrender foundation > buildup https://t.co/KgSPLioBB4

_Checkate (@_Checkmatey_) January 12, 2023

As reported by Cointelegraph, the terms capitulation and accumulation refer to classic market cycles, according to the theory of technician Richard Wyckoff, who wrote about financial markets in the first decades of the 20th century.

As CryptoGlobe reported, popular cryptocurrency analyst Michal van de Poppe predicted that the price of the flagship cryptocurrency could go through a massive bull cycle between 2024 and 2025 to trade between $250,000 and $300. $000.

Notably, various other analysts are bullish on BTC. Some predictions, including from former Goldman Sachs executive Raoul Pal and an analyst from Ark Invest, point to a price of $1 million in the future.

Blockware Solutions, a Bitcoin mining company, released a research report titled Purchasing Power Under a Bitcoin Standard, which states that if Bitcoin becomes the primary store of value, its price could reach nearly $23 million.

The report also predicts that the purchasing power of Bitcoins could represent around 61.4% of the total global market capitalization of financial assets and that its value will increase in perpetuity due to technological advancements increasing economic productivity over time.

The report assumes an average annual global GDP growth rate of 2%, which would cause Bitcoin’s purchasing power to double every 36 years.

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