74% Of Bitcoin Holders Are In The Money As Price Explodes Above $26,000

vBlock data March 17 shows that 74% of bitcoin holders are in-the-money at spot prices. 23% are out of the money, that is, they hold unprofitable positions. On writing, only 4% are at break even, at the level of when they bought their bags.

74% of bitcoin holders in profit

Bitcoin is a volatile asset and prices have risen strongly in the past few weeks, dropping to $15,300 in the fourth quarter of 2022.

However, the coin has maintained a sharp uptrend in the past week, rising from last week’s levels and rising above $26,000, setting a new high in the first quarter of 2023.

Bitcoin price March 17 |  Source: BTCUSDT on Binance, TradingView
Bitcoin price March 17 | Source: BTCUSDT on Binance, TradingView

When written, trackers show that BTC is trading above $26,200, gaining six percent in the last 24 hours and roughly 32 percent in the previous week. At current prices, most BTC holders make a profit.

Bitcoin holders make money
Bitcoin holders earn money: vBlock

A notable development amid this expansion is the high level of participation. The current move up on the Bitcoin daily chart is due to the increase in trading volumes.

In trading and technical analysis, price expansions or contractions with a surge in trading volume indicate participation or interest.

As BTC surged from around $19,500 last week, there has been a noticeable increase in volumes, indicating that this rally is being sustained.

Banking crisis and Binance wind down industry recovery fund

Behind the return to crypto assets, the asset class that Jerome Powell, chairman of the Federal Reserve, called risky, could be due to several reasons.

The transfer of Silicon Valley Bank to the FDIC provoked a massive withdrawal of funds from banks. This development was the cause of the collapse of Silvergate. After the fall of Silicon Valley Bank, Signature Bank was closed.

The United States government, through Janet Yellen and the Treasury Department, fearful of contagion, said it would intervene and ensure savers were not harmed. The Fed has also created a fund and line of credit for troubled banks.

This intervention led to an increase in the Fed’s asset portfolio. This is despite a decline in purchases of Treasuries and mortgage-backed securities (MBS).

Subsequently, analysts now say the Fed has technically returned to quantitative easing. It also increases the likelihood that the central bank will cut interest rates in the next few months.

The emergence of cracks in the banking system and the announcement that Binance, one of the largest cryptocurrency exchanges, will buy several coins, including Bitcoin, from its $1 billion Industrial Recovery Fund also contributed to the uptrend.

Binance announced a recovery fund in November following the FTX crash. The goal was to support promising crypto projects in the face of a liquidity shortage.

While there have been news that some projects have been vetted for funding, Binance is now winding down this initiative and diversifying into crypto assets rather than stablecoins.

Function image from Canva, chart from TradingView

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