A New Year means many different things to many different people, with some considering January a time of gloom, and others seeing it as a moment for hope and exciting new beginnings. And if there’s one thing that brings hope for many people right now, it might well be the situation in certain corners of the crypto market.
More specifically, the last few weeks have seen the bitcoin (BTC) price on an upward trajectory, 1 BTC being worth £18,582.65 as of 24th January, compared to below £14,000 when 2023 opened. The bitcoin price, then, has seen a rise of about 33% over the past month.
What does that movement mean for crypto market participants, including many individuals and organisations benefitting from our own AML crypto services here at TAG Consultancy?
Well, as crypto market analyst Glenn Williams has observed for CoinDesk, it has certainly enabled both short-term and long-term investors to profit, according to on-chain data.
Both short-term and long-term BTC holders have seen profit – but what else do investors need to be aware of?
Williams’ report for CoinDesk cited the analytics firm Glassnode as saying that at the time of writing, the percentage of short-term profiting BTC holders had climbed to 97.5%, which was the highest level seen since November. The company added that long-term BTC holders had also seen profit from bitcoin.
For these purposes, “long-term” refers to a timeframe of more than 155 days, whereas “short-term” is below 155 days.
The CoinDesk analysis further stated that for the first time in six months, the Long Term Holder MVRV (market value to realised value) ratio had climbed above 1.0. This pointed to the cost basis for long-term holders now being less than the bitcoin spot price.
However, as Williams pointed out in this commentary, the fact of more than 97.5% of short-term supply now being in profit raised the question of whether newer BTC investors would opt to cash in on this upward move, or instead maintain their positions – and thereby become long-term holders themselves.
He suggested that investors may “wish to scrutinise the stablecoin supply ratio (SSR) and the amount of bitcoin being sent to exchanges, among other indicators.”
Our experts can help you realise your ambitions in crypto this year
Although it might still be a little too early – at least at the time of typing – to declare the crypto bull market is now “back”, some experts and analysts have suggested the current recovery in the market could indeed make the present moment an advantageous time to invest in crypto.
The decision to invest or not invest, of course, will need to be yours if you are interested in participating in the market in 2023. But if you do plan to get involved in crypto over the coming months, our wide-ranging knowhow here at TAG Consultancy – as we can bring you the benefit of with our highly rated AML crypto services – could greatly help you achieve certain goals.
Reach out to us today, and as a new client of ours, you can receive a free consultation that will enable us to explore how we could work together in 2023.
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