98% of Bitcoin’s unspent transaction outputs (UTXOs) are currently in a state of profit, a level that hasn’t been seen since December 2017, when the price of bitcoin hit its all-time high close to $20,000.
According to crypto analytics firm Glassnode, high levels of bitcoin unspent transaction outputs in a state of profit were typical in previous BTC bull markets, which could indicate a local top is near. The last time BTC’s UTXOs were above 90% was in July 2019, when the price of BTC hit a $13,900 top before a sell-off saw it drop to $7,500 by October of that year, according to CryptoCompare data.
An unspent transaction output, it’s worth noting, refers to bitcoin remaining after a cryptocurrency transaction was executed, similar to the change received after conducting a cash transaction at a store. The high level of unspent transaction outputs in a state of profit could mean that soon BTC users will move the funds to cash out.
In the last 30 days the price of bitcoin moved up nearly 24% to $12,900 at press time, as the flagship cryptocurrency is currently testing the $13,000 mark. Bitcoin’s price moved up this week after PayPal launched a new feature letting users buy, sell, and hold crypto within their platform.
As CryptoGlobe reported, PayPal’s new service supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The only supported jurisdiction, for now, will be the U.S., but the firm is planning to “expand the features to Venmo and select international markets in the first half of 2021.”
Paxos Trust Company is helping PayPal with dealing with crypto in the U.S. To be able to do so, it had to be approved for the first ever “conditional Bitlicense” from the New York State Department of Financial Services (NYDFS).
Featured image via Unsplash.