Over 97% of All Bitcoin UTXOs Are in Profit Given a Prevailing Price of $12,000

Bullish crypto market sentiments have sparked an excitement that was probably last seen in 2017 when Bitcoin rallied to it’s all-time high. For around three years, the market has been pretty much bearish with short bullish periods that barely sustained above $10,000. Well, it seems like Bitcoin and other cryptocurrencies are finally going back to the old days of significant volatility; only this time it’s more on the upside.

A recent on-chain weekly report by Glassnode, a crypto analytics service provider, has now revealed that over 97% of Bitcoin unspent transaction outputs (UTXOs) were in the money when BTC tested $12,000 in mid-August. This basically means that less than 3% of Bitcoin UTXOs are out of money or were created when the prevailing BTC price was higher than it is as of press date. According to Glassnode, this is actually bullish sign based on historical stats of UTXOs percentage in profit,

“Historically, when the percentage of UTXOs in profit crosses the 95% threshold, BTC sees significant gains over a short period of time – usually around 2-3 months, although sometimes shorter.” Highlights the weekly report.  

P2P Bitcoin Trading Platforms at the Core of Adoption

As with any ecosystem, there has to be varied contributors for the network to be fully efficient and prospectus at the same time. P2P Bitcoin trading platforms have since emerged as a fundamental pillar of the crypto ecosystem given their role in on-ramping newbies and matching interested traders. To put into perspective, P2P BTC trading networks are in most cases the first point of contact that one leverages to acquire Bitcoin and other assets.

Innovators in this space like Bitcoin Global are now coming up with better functions that could be particularly favorable in the ongoing bullish market. This P2P Bitcoin trading ecosystem recently introduced customizable BTC pricing equations to scale the earning potential of traders posting adverts on its platform. Ideally, Bitcoin Global users can select their preferred market data sources from five crypto exchanges which include Bitstamp, Kraken, Coinbase, Bitfinex and WhiteBIT. The value proposition in this approach is embedded in operators such as a multiplication or min/max function which can then be applied to the data source for margin setting.

With coverage in over 160 countries, Bitcoin Global is also one of the BTC trading networks where participants can leverage close to 50 payment methods to settle their trades. On top of this convenience, the project is also running a limited offer where new users joining the platform in August are exempted from transaction fees. This means that prospective BTC buyers and sellers could actually make more gains from the market, having eliminated trading costs. Notably, Bitcoin Global does not handle any funds but only provides escrow services and oversight to ensure that its P2P BTC trading network is efficient.

Institutional Investors Now on Board

Other than the technical fundamentals of the crypto industry, institutional investors could soon be playing a big role in crypto adoption. Recent months have in fact seen a spike in interest and activity by financial market giants including U.S based MicroStrategy which is the first publicly listed company to allocate a significant part of its balance sheet to Bitcoin; the firm bought 21,454 BTC at $250 million and cited inflation-hedging.

Going by such developments, it comes as no surprise that a company like Grayscale Investments which leads the pack in digital asset management has also been expanding its AUM aggressively. In Q2 alone, the firm increased its portfolio by close to $1 billion, bringing its total crypto AUM to $5.2 billion. It has since scaled its expansion efforts with a debut in TV Ads following the launch of Grayscale television. This milestone came as a big breakthrough for the crypto industry, especially in running media adverts. It is in the same spirit that Mike Novogratz’ Galaxy Digital ran an advert in U.K’s Financial Times, a better avenue to reach boomers whose safe haven has been gold for the longest time.

Industry stakeholders reacting to these debuts are now acknowledging that it might have actually happened faster than they anticipated. Quantum Economics Founder, Mati Greenspan, is one of the prominent voices in the crypto space that have commended the shift to mainstream media as an advertising alternative for crypto projects. Speaking to Cointelegraph, Greenspan highlighted that the bullish sentiments are a result of a better understanding of the underlying value in cryptocurrencies,

“Price alone is a good indicator that people are understanding this message more and more clearly. Bitcoin was invented as a form of money that is independent of governments and central banks. […] I just hope that the crypto solutions are ready by the time they’re actually needed.”