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⚡80% of Bitcoin Supply in Profit🎁

Croxroad

23 Nov 2023 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🟩 Glassnode Reports

Recent data from Glassnode reveals that the majority of Bitcoin holders are currently experiencing profits. This surge in profitability, reaching 83.6% of the circulating supply or 16.36 million BTC during the last week's rally, is noteworthy and surpasses the historical average of 74%. Glassnode's 'Week on Chain' report indicates that although Bitcoin's value has retreated 4% from its recent high of $37,900 on November 16, the accumulated profit remains substantial.

The report also highlights a robust accumulation trend, especially during this recent price expansion, suggesting increased investor confidence in the upward trend. The Accumulation Trend Score indicates stronger patterns compared to previous rallies in late January and late March. Despite the crypto market transitioning between bear and bull phases over the past ten months, the October rally marks a sustained break above average transition phase trading levels.

Interestingly, Glassnode notes that the crypto market is currently in an "equilibrium phase" concerning long-term holder spending and profitability. This phase often precedes a potentially "euphoric" bull market rally. The report underlines the positive impact of strong market performance and growing optimism around a potential Bitcoin ETF, contributing to investor confidence in the ongoing uptrend.

🪐 $200M+ Liquidated in Bitcoin

Binance's recent settlement with the U.S. Securities and Exchange Commission (SEC) had a ripple effect on the market, especially impacting futures traders banking on further market growth. In the aftermath, data from CoinGlass reveals that crypto perpetual futures positions totaling $227 million were liquidated in the past 24 hours. Notably, around 80% of these liquidated positions were bullish longs.

The consequences extended to bitcoin trades, where both longs and shorts, betting on price increases and decreases, respectively, saw over $67 million in liquidations. This event marked one of the most significant liquidation incidents in 2023.

Liquidation occurs when an exchange forcefully closes a trader's leveraged position due to a loss exceeding the initial margin. This process signals a trader's inability to meet margin requirements for a leveraged position, often indicating a potential local top or bottom in the market.

For traders, such data serves as a valuable signal, indicating the effective removal of leverage from popular futures products and suggesting a short-term decline in price volatility. It's worth noting that Binance, as the world's largest crypto exchange, faced significant legal consequences, agreeing to a $4.3 billion settlement with the SEC for charges related to breaking sanctions and money-transmitting laws—a historic penalty in U.S. corporate legal history.

🦼 Bitcoin Dominance

Bitcoin dominance is a metric that reflects the relative importance of Bitcoin in the cryptocurrency market. It is calculated by dividing the market capitalization of Bitcoin by the total market capitalization of all cryptocurrencies and expressing the result as a percentage. When Bitcoin dominance is high, it indicates that Bitcoin holds a significant share of the overall market value, suggesting a market where investors are leaning towards Bitcoin over other cryptocurrencies. Conversely, a lower Bitcoin dominance implies a more diverse market, with a greater focus on alternative cryptocurrencies or "altcoins." This metric is closely watched by traders and investors as it provides insights into the shifting dynamics and preferences within the cryptocurrency ecosystem. fluctuations in Bitcoin dominance can influence investment strategies and market sentiment.