Bitcoin's profitability has reached a critical point exceeding 90%. This article examines the implications of this fact and recent investments from BlackRock.
Bitcoin Profitability at Historic High
Data from CryptoQuant shows that over 90% of Bitcoin units are trading above their cost basis. Analysts note that in the past, when this level dropped below 90%, the market often entered corrective phases.
BlackRock's Bitcoin Investments
Despite the current volatility, institutional demand remains strong. BlackRock recently purchased $51.39 million worth of Bitcoin, indicating the firm’s confidence in the cryptocurrency's future. Over 454 BTC were added through multiple deposits.
Technical Analysis and Bitcoin Price
Bitcoin is currently trading around $112,946 after facing resistance at $120,000. Technical analysts note that the current movement is testing an important support zone between $110,000 and $105,000. Holding above this mark could confirm further upside, while a breakdown opens the way for deeper retracement levels.
The situation surrounding Bitcoin serves as a significant indicator for investors. High profitability and active purchases from companies like BlackRock may signal sustained interest in cryptocurrencies, while corrective risks remain considerable.
