No FOMO Yet: Bitcoin Bull Market Analysis
The Bitcoin (BTC) bull market "fear of missing out" (FOMO) has yet to make an appearance, despite the fact that BTC price has risen 120% this year. On-chain transactions involving "younger" bitcoins are just starting to gain momentum, according to data from statistics platform Look Into Bitcoin. While the number of smaller wallets is increasing, speculators who hold BTC for short periods of time have not returned to the network in large numbers.
Realized Cap HODL Waves Metric Provides Clues
Philip Swift, creator of Look Into Bitcoin, pointed to the Realized Cap HODL Waves metric (RHODL Waves) as evidence of the current state of the Bitcoin bull market. RHODL Waves analyzes the age group of the BTC supply and compares it to the price at which the coins were last moved on-chain. The metric shows a spike in coins that move frequently during bull markets and a decrease in bear markets when investors are hesitant to sell. Swift commented, "No FOMO yet. We're still early."
Bitcoin Profitability Nears Potential Breakeven Point
An examination of Bitcoin supply "age bands" reveals that those who increased their BTC exposure before the 2021 all-time highs are currently at a loss, according to Onchained, a contributor to on-chain analytics platform CryptoQuant. The Net Unrealized Profit/Loss (NUPL) indicator, which provides profitability ratios for stored coins, indicates that holders with bitcoins held for 18 months to 3 years are not yet profitable. However, if Bitcoin continues its rally beyond $39,000, they may reach a potential break-even point.
Whale Entities Increase BTC Selling
Whale entities have been selling BTC at current prices, as shown by data from CryptoQuant. The overall proportion of unspent transaction outputs (UTXOs) currently at a loss is now just 11.6%. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.