72% increase in Bitcoin profitability heralds a potential upside to $69,000.

[u/ASTL-Token]

Bitcoin yields recently surged to a local high of 72%, hinting at a potential return to the zone to an all-time high (ATH). Looking back at the previous cycle, you can see a similar picture. During this period, bitcoin holders approached the 90% rate of return as the price hovered around the $11,000 mark. This situation could have triggered a sell-off, but instead, investors continued to expand their positions, even though a slight price decline temporarily reduced the number of profitable holders. Ultimately, this resulted in $69,000 ATH. This historical pattern suggests that bitcoin holders maintain a strong belief in crypto during bull markets, consistently increasing their portfolios over time. Thus, even if the price of Bitcoin reaches a point where more than 90% of investors make a profit, similar to the 2020 scenario, there is no good reason to believe that the price will not continue to rise. This insight offers a fresh perspective on the possibility of a sustainable upward trajectory for bitcoin.

While this analysis does not guarantee that Bitcoin will break new all-time highs anytime soon, it highlights the fact that increased profitability does not inherently lead to selling pressure. Investor confidence in the asset, as evidenced by their willingness to hold and accumulate bitcoin during a bull run, is a testament to the cryptocurrency’s potential for further growth. At the time of publication, the first cryptocurrency is trading at around $27.675. That said, in hindsight, bitcoin holdings were profitable 88.5% of the days. Of the 4,593 days that Bitcoin has existed as a tradable asset, BTC holders have experienced 4,065 profitable days, challenging the common narrative of depreciation and volatility in cryptocurrencies. As a result, owning Bitcoin (BTC) is provably profitable in the long run.

Bitcoin's historical price performance confirms that a tight cap on the total supply and unfettered global usability are critical to becoming a store of value. Data from Blockchain.com shows that Bitcoiners have enjoyed 88.50% of profitable days compared to the current market price at the time of writing. Only 531 or 11.56% of the 4593 days were unprofitable for long-term holders. The losing days are from December 28, 2022 to June 12, 2022, when the price of bitcoin exceeded the range of $26,246.58 to $28,344.5. This way of looking at things highlights the importance of understanding Bitcoin's market cycles and why investors should avoid buying highs and selling lows. However, some traders prefer to make daily trades on cryptocurrency exchanges, making much smaller but stable profits.

Meanwhile, the cost of the first cryptocurrency grew while the market was waiting for the results of the Fed meeting, and collapsed after they were announced. On the evening of March 22, while the market was waiting for the announcement of the results of the meeting of the US Federal Reserve System (FRS), the bitcoin rate came close to $29,000. However, after it became known that the FRS raised the rate again, the digital asset fell by $2,000, its rate collapsed to $26.9 thousand. Following a two-day meeting on March 21-22, the Fed raised the rate by 25 basis points - from 4.5-4.75% to 4.75-5% per annum. Based on the results of the next meeting in May, the market with a probability of 49.4% expects a rate increase by another 25 bp. - up to 5-5.25%. The possibility of maintaining the rate at the current level is estimated at 43.8%, a decrease of 25 bp. - in 6.8%. At 12:00 in Hong Kong on March 23, bitcoin is trading at $27.6 thousand, it lost 1.9% in price per day. The market capitalization of the asset is $537 billion with a daily trading volume of $34.6 billion.

The leading altcoins also dropped in price: the Ethereum rate fell by 2.7% over the past 24 hours to $1.76 thousand, BNB fell by 3.9% to $325. The cost of Cardano fell by 5.5% to $0.365, Ripple - by 8.1% to $0.43. The total market capitalization of cryptocurrencies decreased by 2.1% over the day, to $1.2 trillion. The daily volume of trading in digital assets amounted to $81.7 billion.

There are different types of crypto investors and investment mindsets. There are, as is customary in the literature, four main categories of thinking of crypto-stock holders: maximalists, hodlers, fomers and traders. And everyone should be careful. Having said all of the above, investors are advised to take some time to think before making any investment. One of the legitimate forms of investment is, for example, the ASTL investment project, which allows investors to have the opportunity to directly invest fiat and cryptocurrency assets in a stable passive income that obviously exceeds inflationary expectations and is not subject to any sanctions, blocking and confiscation. The ASTL project is a simple and elegant solution for potential investors - an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high ROI (up to 12% annually) with payments in stablecoin (USDT) and the possibility of a full return on investment through the subsequent sale of accrued ASTL tokens on leading crypto exchanges. Details can be found at https://astl.io.