Around 13% of the flagship cryptocurrency’s circulating supply has returned to a state of profit, meaning it was acquired below the current price of Bitcoin ($BTC), which at the time of writing is slightly above $18,000.
According to data from on-chain analytics firm Glassnode, after Bitcoin’s recent rally to surpass the $18,000 mark, a significant percentage of the cryptocurrency’s supply returned to profit in a move that “helps to confirm that a large volume of $BTC was acquired between $16.5k and $18.2k.”
The accumulation could have a significant impact on the cryptocurrency’s future price performance, as the area could now turn into a strong support zone in which demand far outweighs supply. Checkmate, Glassnode’s leading on-chain analyst, commented:
As Cointelegraph reported, the terms “capitulation” and “accumulation” refer to classic market cycles, according to theory from technician Richard Wyckoff, who wrote about financial markets in the early decades of the 20th century.
As CryptoGlobe reported, popular cryptocurrency analyst Michaël van de Poppe has 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 from an Ark Invest analyst, point to a $1 million price tag in the future.
Blockware Solutions, a company specializing in Bitcoin mining, has released a research report titled “Purchasing Power Under a Bitcoin Standard,” which states that if Bitcoin becomes the dominant store of value, its price could reach nearly $23 million.
The report also predicts that Bitcoin’s purchasing power could comprise approximately 61.4% of the total global market cap 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 lead to the purchasing power of Bitcoin doubling every 36 years.
Featured Image via Unsplash