Bitcoin long-term holders are now profitable again, signaling a potential major market rally.
The recent upswing by Bitcoin has brought long-awaited profitability for BTC investors who have held onto the cryptocurrency for a considerable time.
Data from on-chain analytics firm Glassnode has shown that Bitcoin’s long-term holders are finally profitable again after staying underwater for almost 12 months. This observation was made today by crypto data aggregator Satoshi Club, who noted that data marks “a potential indicator of a major market rally ahead.”
📈 #Bitcoin's long-term holders are finally profitable again, marking a potential indicator of a major market rally ahead! #Glassnode's data shows LTH-SOPR has crossed above 1 for the first time since May 2022. pic.twitter.com/2oud2DA0YS
— Satoshi Club (@esatoshiclub) April 28, 2023
Additionally, Glassnode data also shows the Long-Term Holder- SOPR has finally crossed above the one mark for the first time since May 2022. The LTH-SOPR indicates the degree of realized profit and loss for all coins moved on-chain that have a lifespan of more than 155 days.
“Long-Term Holder SOPR variant tends to better reflect macro market shifts. Following an extended period of realized losses (LTH-SOPR < 1.0), the LTH cohort is finally transitioning back into a regime of profitable spending, a structure similar once again to past cycle transition points,” Glasnode wrote in its latest Week Onchain Newsletter.
Bitcoin Breaks Correlation with Traditional Assets
Meanwhile, following the recent surge, Bitcoin has also continued to lose correlation with traditional markets. The cryptocurrency was strongly correlated to Wall Street’s tech-heavy indexes during 2022 due to uncertainty in the unprecedented speed of rate hikes from the federal reserve. However, as 2023 unfolds, Bitcoin seems to be decoupling from traditional assets and entering a class of its own.
Crypto analyst Diamond XBT highlighted this development today, sharing data from IntoTheBlock, which currently suggests “there’s almost no correlation between BTC and S&P 500 or NASDAQ in the past 30 days.”
👀Take a closer look at #Bitcoin's correlation to traditional markets! Recent @intotheblock data suggests there's almost no correlation between $BTC and S&P 500 or NASDAQ in the past 30 days. #cryptocurrency pic.twitter.com/s2uUVCGdiG
— Diamond XBT💎 (@Diamondxbtee) April 28, 2023
Interestingly, as Bitcoin detaches from these indexes, its colleration with Gold seems to grow stronger. Recently, on-chain analytics firm Kaiko Data noted, “Bitcoin 30-day rolling correlation with gold has surged since March and now stands at 57% – its highest level in almost two years.” This suggests that investors increasingly see cryptocurrency as the best alternative to gold as a hedge against inflation.
At press time, Bitcoin was trading at $29,287, down $0.63% in the past 24 hours, as per Coinmarketcap data.
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