Almost all bitcoin holders are currently in profit for the first time since bitcoin overtook the previous long standing all time high of $20,000.
According to blockchain analytics startup Glassnode, 99.02% of all BTC supply is now in profit with that last 0.98% potentially joining soon as bitcoin nears its final resistance at $64,000.
The crypto jumped today as Shanghai woke up with it further rising currently as Los Angeles awakes.
Chinese stocks were further down slightly today as a $1.4 billion property deal with state backers fell through for Evergrande.
Their central bank has gone out to try and assure the market the bond crisis won’t spread, but an official default may be due as soon as next Saturday.
Chinese investors therefore are piling up on bitcoin, as a hedge or to diversify, while Americans are hyping up a potential new bitcoin fiat futures ETF that may open some new markets while raising concerns about Grayscale.
The primary price driver however is probably a change in sentiment that may intensify if bitcoin takes the final resistance at $64,000.
Afterwards, bitcoin enters thin air in outer space where there is no longer much of a price anchor and resistance or support gaps move from hundreds of dollars to thousands.
The only anchor then would be support and resistance in eth, until that too takes $4,400 in which case all can be floating without gravity pulling down.
Moreover as pretty much all would be in profit, they may be more inclined to let it ride, causing a supply shock as sell side liquidity dries up.
Previously in these sorts of situations we’d enter a no mans land during a four week period of wow. However, that’s when everyone is drunk. Currently we’re more in the first glass in a turn from sober to a bit lighter up with sensibilities still somewhat intact.
Soon it may be time to start light dance perhaps in Decentraland parties where one is expected to go on for four days.
Or we may be completely wrong but there’s a sense of excitement which itself could drive a supply crisis as bitcoin nears a new all time high.