Bitcoin Market Analysis: Diversification, Profitability, and the Oscillating Equilibrium

10:15 am, Wed, 5 July 23

Current Bitcoin Data

Market Cap
Volume (24h)

The recent surge in demand for Bitcoin options contracts indicates that traders are diversifying their strategies, potentially hedging their bets against market volatility. The open interest, which measures the total number of outstanding derivative contracts, such as futures and options, has soared to $13.8 billion, nearing the all-time high (ATH) of $15.1 billion. This growing interest in options contracts could signal increased market speculation or signify a broader acceptance of Bitcoin as an asset class.

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The Adjusted Bitcoin Percent Supply in Profit, an important metric, currently stands at 72.3%. This means that 72.3% of all Bitcoin in circulation, equivalent to 10.8 million coins, are presently profitable. This could suggest that most Bitcoin holders are satisfied with their investments and might continue to hold their coins, anticipating further price appreciation.

Moreover, when comparing the current profit percentage with historical data, we see that 49.2% of the trading days have recorded a larger value. This suggests that the market is currently fluctuating around its equilibrium point. In layman’s terms, this means that the market is currently in a state of balance between buying and selling pressures.

Looking at the overall volume of exchanges, there has been a significant year-to-date (YTD) increase. The total volume has increased from $875 million to $2.24 billion, a substantial 164% rise. This could signify increased trading activity and engagement within the Bitcoin market, generally a positive indicator of market health.

However, this trading volume is still a considerable 63.3% lower than the ATH of $6.1 billion recorded during the primary bull market in 2021. This suggests that although the market has seen a significant uptick this year, it still has yet to reach the frenzied heights of the 2021 bull run.

In terms of technical analysis, based on these figures, the market is at a crossroads. While the increased interest in options contracts and higher volume suggest bullish tendencies, we must remember that the market is currently oscillating around its equilibrium. External factors and news could largely influence The next significant move, as the market has shown a propensity to react sharply to such stimuli. Traders and investors must stay alert to these signals, monitor the market closely and adjust their strategies accordingly.

How to Trade Bitcoin (BTC)?

To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.


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