In the past week, Bitcoin has seized considerable attention, marking a 2.58% increase, as reported by CoinMarketCap. Over this period, the leading cryptocurrency transitioned from trading around $37,800 to nearly breaching the $39,000 threshold.
This positive price movement has translated into noteworthy metrics for Bitcoin, potentially fueling investor interest in the weeks ahead. Bitcoin Hits Two-Year High in Profitability
According to a recent post on X by blockchain analytics firm IntoTheBlock, a substantial 81.35% of all Bitcoin holders are currently in profit. This achievement represents the highest level of profitability for BTC investors since December 2021, when the token’s value exceeded $50,000.
Bitcoin’s profitability is poised for further growth, with several factors indicating a potential move into the $40,000 price zone.
Firstly, there’s an optimistic outlook regarding the approval of a Bitcoin Spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). Analyst James Seyffart, in a Friday report from Bloomberg, fueled speculation by suggesting that the approval order could materialize between January 8 and January 10, 2024. In anticipation of increased institutional demand a spot ETF could bring, investors may augment their Bitcoin holdings, potentially leading to a price surge in the coming weeks.
Additionally, US Federal Reserve Chairman Jerome Powell’s statements suggesting a hiatus in rate hikes in the coming months could open the door for Bitcoin and other digital assets to experience further price gains. Historically, increases in federal rate hikes have deterred investments in high-risk assets like cryptocurrencies.
Despite these positive indicators, it’s essential to acknowledge that the crypto market remains subject to various forces, and prudent research is advised before engaging in any transactions. Bitcoin Network Fees See a 50% Reduction
In another positive development for the Bitcoin community, the network witnessed a 50% decline in total fees over the past week. IntoTheBlock attributes this reduction to a significant drop in ordinals-related transactions.
The Ordinals protocol, introduced in January 2023, enables the creation of non-fungible tokens (NFTs) called BRC-20 tokens on the Bitcoin network. Similar to Ethereum’s native NFTs, heightened interest in Ordinals results in increased network fees and vice versa.
As of the latest update, Bitcoin is trading at $38,758, experiencing a 0.17% decline in the last hour. Concurrently, the asset’s daily trading volume has risen by 4.97%, reaching $20.37 billion.
