Around 13% of the flagship cryptocurrency’s circulating supply has returned to profit, implying that it was purchased below the current price of Bitcoin ($BTC), which is slightly above $18,000 at the time of writing.
According to statistics from on-chain analytics firm Glassnode, following Bitcoin’s recent climb to reach the $18,000 mark, a considerable portion of the cryptocurrency’s supply returned to profit, confirming that “a large volume of $BTC was bought between $16.5k and $18.2k.”
The accumulation could have a huge impact on the cryptocurrency’s future price performance, as the area has the potential to become a strong support zone where demand considerably outweighs supply. Checkmate, Glassnode’s chief on-chain analyst, stated:
According to the idea of technician Richard Wyckoff, who wrote on financial markets in the early decades of the twentieth century, the terms “capitulation” and “accumulation” allude to classic market cycles, as reported by Cointelegraph.
According to CryptoGlobe, famous cryptocurrency expert Michael van de Poppe believes the flagship cryptocurrency will see a “major bull cycle” between 2024 and 2025, trading between $250,000 and $300,000.
Notably, a number of other analysts are bullish on Bitcoin. Some forecasts, such as those made by former Goldman Sachs executive Raoul Pal and an Ark Invest analyst, foresee a $1 million price tag in the future.
Blockware Solutions, a Bitcoin mining startup, has published a research report titled “Purchasing Power Under a Bitcoin Standard,” which claims that if Bitcoin becomes the dominant store of value, its price may reach approximately $23 million.
According to the analysis, Bitcoin’s purchasing power may account for around 61.4% of the total world market cap of financial assets, and its worth will continue to climb in perpetuity as technological improvements increase economic output over time.
The analysis assumes a 2% annual global GDP growth rate, which would result in Bitcoin’s purchasing power doubling every 36 years.
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