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While long-term investors appear unaffected by the surge, the rally sets the foundation for a ‘resumption of the 2023 uptrend,’ analysts say 
Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/">BTC</a>) volatility explosion on Oct. 24 has set the market ready for a new rally as a “meaningful proportion of supply and investors now find themselves above the average break-even price,” Glassnode says. 
In a <a href="https://insights.glassnode.com/the-week-onchain-week-43-2023/" target="_blank" rel="noreferrer noopener">research report</a> on Oct. 24, analysts at the blockchain analytics firm noted that over 80% of Bitcoin supply is now in profit as the market is approaching year-to-date highs. 
<figure class="wp-block-image size-large">
 <img decoding="async" loading="lazy" width="1024" height="590" src="https://crypto.news/app/uploads/2023/10/aisypdhf-1024x590.png" alt="Bitcoin supply in profit | Source: Glassnode" class="wp-image-14207615">
 <figcaption class="wp-element-caption">
 Bitcoin supply in profit | Source: Glassnode
 </figcaption>
</figure> 
However, long-term holders (LTH) seem unaffected by this week’s rally as almost 30% of their supply is “held at a loss,” analysts say. 
 You might also like: <a href="https://crypto.news/bitcoin-to-hit-45k-in-2023-as-funding-rates-signal-fomo-matrixport-says/"> Bitcoin to hit $45k in 2023 as funding rates signal FOMO </a> 
The current state of affairs for Bitcoin holders is similar to late 2015 and early 2019 and the March 2020 bottom, suggesting that the current cohort “may well be a more hardened and firm-handed” compared to prior cycles, Glassnode added. 
<blockquote class="wp-block-quote"> 
 “A meaningful proportion of supply and investors now find themselves above the average break-even price, located around $28k. This sets the foundation for a resumption of the 2023 uptrend.” <cite>Glassnode</cite>
</blockquote> 
In the meantime, analysts at Bitfinex <a href="https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-bitcoin-volatility-has-arrived-and-more-to-come-as-us-rates-expected-to-be-higher-for-longer/" target="_blank" rel="noreferrer noopener">say</a> that on-chain metrics, such as the Spent Output Age Bands (SOAB), indicate further support for sustained volatility for Bitcoin in the coming months. As Bitcoin rapidly surpassed the $34,000 mark, the crypto market is now more dependent on major news narratives than ever before, analysts say. 
Bitcoin has reached new yearly highs shortly after <a href="https://crypto.news/blackrock-spot-bitcoin-etf-added-to-nasdaqs-clearing-agency/">reports surfaced</a> that BlackRock’s iShares Bitcoin Trust has been listed on the Depository Trust and Clearing Corporation (DTCC) amid staunch demand for an exchange-traded fund within the crypto industry and broader financial markets. 
 Read more: <a href="https://crypto.news/coinbase-denies-weekly-5k-withdrawal-limit-on-bitcoin/"> Coinbase denies weekly $5k withdrawal limit on Bitcoin </a>

Bitcoin ready for new rally as 80% of supply is in profit

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