Bitcoin traders in profit remain cautious as market digests Ripple ruling

Bitcoin’s realized price just above $20,000 suggests market participants remain firmly in profit despite regulatory uncertainty

article-image

shevtsovy/Shutterstock, modified by Blockworks

share

Price action for the world’s largest crypto asset has so far led to a modest increase in new demand inflow this year as speculation over digital asset regulation churns.

Over the past four weeks, while bitcoin has been range bound between about $29,500 and $31,500, inflows of dollars into crypto-related funds have hit a two-year high at $742 million, according to CoinShares.

To date, the realized price for bitcoin (BTC) rests around $20,430 compared to a market price of $30,000 suggesting market participants remain firmly in profit, data shows.

The Bitcoin Realized Price reflects the cumulative worth of all bitcoin, determined by the price at which they were acquired, divided by the overall number in circulation.

Essentially, if the market price of BTC exceeds its realized price, it typically signifies aggregate profitability for market participants. Conversely, when the market price falls below the realized price, it generally indicates a collective notional loss.

It comes as the number of unique addresses holding at least 1 BTC continues to rise steadily, indicating a willingness to hold the asset among that specific cohort despite regulatory uncertainty following last week’s events.

The Realized Cap, different from realized price, currently hovers just below the $400 billion mark, indicating a consistent influx of capital into the asset throughout the course of 2023, Glassnode wrote in a recent research note.

“Despite BTC setting a temporary yearly price high of $31,700, the market remains extremely quiet,” Glassnode said. Though, the blockchain analytics firm noted, “the market is firmly within a regime of profit dominance.”

While the ruling in the case of Ripple v. SEC was initially perceived as bullish among market participants, given “programmatic” XRP sales were deemed not as securities on secondary markets, the New York court also left some open questions.

Despite rising to fresh highs this year, bitcoin has failed to sustain any further breakouts while the market begins digesting the second half of the Ripple ruling: Institutional sales of XRP, according to the New York judge presiding over the case, are securities transactions.

Open interest for BTC futures contracts remains elevated and has continued to post consistent figures above $4 billion for the past three weeks, Coinglass data shows.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

recent research

Blinks Report Image.png

Research

Blinks enable the ability to vampire attack user monetization of existing networks by inserting onchain and financialized functionalities directly within the popular social feeds and digital experiences of today.

article-image

I was excited about being on the precipice of realigning societal incentives and solving many issues plaguing our modern financial world

article-image

Cypherpunk Holdings has rebranded to Sol Strategies in a pivot to a Solana-first investment approach

article-image

BitGo’s wrapped bitcoin (wBTC) has a new custodial challenger

article-image

Make no mistake: Tether makes a ton of money. But exactly how much depends a lot on the price of bitcoin.

article-image

A new report on stablecoin activity in emerging markets shows their immense popularity in Nigeria

article-image

Version 2.0 brings users closer to a “Coinbase experience”