Bitcoin Market Shows Resilience Amid Recent Pullback

According to Odaily, a recent report by Glassnode indicates that Bitcoin's recent decline reflects a cooling phase, yet the relatively low investor stress levels suggest the bull market is far from over. The report highlights that the number of BTC currently in an unrealized loss state fluctuates between 2 million and 3.5 million, significantly lower than the 4 million during the mid-2024 low, indicating that market conditions are not as dire. In contrast, early bear market history recorded unrealized loss BTC numbers between 4 million and 8 million. The Market Value to Realized Value (MVRV) ratio, a key indicator of unrealized market profits, currently stands at 1.32, suggesting that Bitcoin holders have an average unrealized gain of 32%. Despite the market's retreat from its peak, this metric indicates that market sentiment remains largely optimistic. The report also notes that historical analysis shows MVRV peaks have declined with each successive market cycle, reflecting increased maturity in the Bitcoin market and reduced speculative intensity. For instance, the MVRV peak reached 8.07 in 2011 but has decreased to 2.78 by 2024. Currently, Bitcoin is trading above the one-year average of $90,900 but below the bullish cap of $112,600, indicating that the market remains in a bullish phase. Additionally, the report points out that Bitcoin's market behavior has evolved over time. Reduced volatility, increased institutional participation, and new spot demand driven by ETFs have contributed to a more stable market structure. Despite the current adjustments, indicators suggest that the Bitcoin market remains resilient, with an overall optimistic outlook.