Bitcoin (BTC) skyrockets 43% in Q3... ETF investors turn 'profitable' in 8 months

▲ Bitcoin (BTC)/AI Generated Image

Bitcoin, the leading virtual asset, has surged over 40%, breaking through the seasonal summer lull, and is on the verge of achieving its second-strongest Q3 performance ever.

According to U.Today, a cryptocurrency specialized media outlet, on September 27 (local time), Bitcoin (BTC) rose approximately 43.5% during the third quarter, marking its second-highest Q3 return in history, following an 80.4% surge recorded in 2017. Starting the quarter at around $58,500, Bitcoin recently soared to around $87,000, recovering most of its losses from the first half of the year. Unlike the typical Q3 trend of sideways movement or gradual weakness, this year saw a strong rebound.

Driven by this uptrend, U.S. Bitcoin spot Exchange-Traded Fund (ETF) investors have also recovered their principal and entered profitability for the first time in eight months. Bitcoin surpassed $87,000, quickly reclaiming the estimated average purchase price of $82,000 for spot ETF investors. Consequently, the unrealized losses, which amounted to $22 billion during last summer's downturn, have now reversed into approximately $3 billion in unrealized gains. Institutional investors reportedly maintained over $55 billion in total net inflows even during the price correction phase, defending their positions without capitulating.

Market structure improvement is also confirmed in terms of on-chain metrics and technical analysis. Bitcoin recovered both its 200-day moving average and 50-week moving average, signaling an escape from the long-term bear market. Having successfully navigated the short-term volatility factor of a large quarterly options expiry on September 25, the combination of a short squeeze with large open interest and increased spot trading volume has reportedly secured strong downside rigidity.

The next resistance level is identified as the $96,700 mark, where the average price range of Market Value to Realized Value (MVRV) is located. The market anticipates that if this level is surpassed, a retest of the psychological $100,000 threshold will become visible. As Bitcoin, having overcome a prolonged stagnation in the first half of the year, prepares to enter Q4, attention is focused on whether it can continue its major uptrend towards the $100,000 mark, supported by institutional capital inflow and improved spot demand.

[Article Key Summary]

-Bitcoin rose approximately 43.5% in Q3, recording its second-highest Q3 return in history since 2017.

-By surpassing $87,000 and exceeding the average purchase price of $82,000, Bitcoin spot ETF investors turned profitable for the first time in eight months.

-With the recovery of the 200-day and 50-week moving averages, attention is focused on the possibility of breaking through the $96,700 resistance level and reaching $100,000.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*