The dynamic that began in March 2023, after a low at $19,000, is confirmed: on February 12, 2024, Bitcoin returned to the $50,000 mark, a level not reached since December 2021. In addition to the symbolism of the price, synonymous with ‘an increase of 127% in one year, this threshold means that the majority of bitcoin holders are now in profit: in fact, according to the analytical site IntoTheBlock48 million bitcoin addresses, or more than 90% of the total holders of this cryptocurrency, acquired their balance at a lower price and are therefore in a situation of latent capital gain!
Good news for investors therefore, even if some of them obviously hope that Bitcoin returns to its record of 67,000 dollars, reached in November 2021. For that, it would still need to gain 30%. An increase far from impossible for the digital asset, accustomed to gains of this scale, especially with the success of Bitcoin ETFs in the United States: deployed almost a month ago, these investment products in bitcoin, accessible to all American individuals, have already accumulated more than 192,000 bitcoin, or nearly $9 billion in purchases on the market. According to Alexandre Roubaud, CEO of the bitcoin investment application Bitstack, this American offer confirms positive signals already visible in blockchain analyzes. “The data on-chain were already very interesting: we have been for several weeks, several months, at the highest level of bitcoins immobilized for a year and more, explains the entrepreneur, whose clients have purchased more than 22 million euros worth of bitcoin in 2023 and 96% are in a situation of latent capital gain. It is estimated that 15 million bitcoins, out of the 19 million in circulation, are not for sale. And the ETFs are added to this: it is a new offer which complements the existing one, because it is a regulated vehicle accessible to individuals but also to institutions.” Products that create buying pressure, a few months from halvingthis automatic mechanism specific to Bitcoin which halves the creation of new bitcoins approximately every four years.
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No bitcoin buying frenzy among individuals yet
Among the big winners from this price increase, Microstrategy can boast: the American business software publishing company has for three years oriented its business strategy towards the frantic purchase of bitcoins for its cash flow to the point of issuing bonds to finance its investments. With now 190,000 bitcoins in its virtual vault, the company has an unrealized gain of… $3.5 billion. Enough to propel the company’s action to $720, up 10% at the Nasdaq close yesterday.
And if Bitcoin’s fluctuations are always unpredictable, most current signals suggest that the first of the cryptocurrencies could continue to progress, in particular because demand from individuals has not yet regained the enthusiasm of three years ago. “At Bitstack, we are seeing additional organic traffic but it remains moderate because there is not yet a frenzy from individuals or the media, explains Alexandre Roubaud. Within the application, however, we are seeing increased activity, both from buyers and sellers who take advantage of it to make their capital gains.” It is indeed worth remembering that making profits is never a losing strategy, even if prices continue to soar…