Bitcoin does getting closer to $50,000 notice after a week of it extreme bullish price actiona level we have not seen since December 2021. Amid this price surge, the number of Bitcoin addresses making profits has now passed over 90%.
According to data from IntoTheBlock, 91% of Bitcoin addresses are currently profitable. This means that the vast majority of holders and investors have an incentive to continue holding, especially as the next halving for Bitcoin miners approaches.
91% of Bitcoin addresses are now making a profit as the price approaches $50,000
Bitcoin has had an eventful week in terms of price action. The world’s largest cryptocurrency recently grew 14.4%, reaching $48,500 on February 11, a 26-month high. This price spike, while very welcome, seemed to have taken most investors by surprise as it followed four weeks of unimpressive action following the debut of spot Bitcoin ETFs in the US.
Remarkable, IntoTheBlocks The ‘Global In/Out of the Money’ profitability metric shows that the total number of profitable addresses is now 46.87 million addresses, representing 90.53% of the total number of addresses. At the same time, 3.44 million addresses, representing 6.64%, are still posting losses, while 1.46 million addresses, representing 2.83% of the total number of addresses, are at the break-even point.
Similarly, IntoTheBlock’s “In/Out of the Money Around Price” metric, which tracks addresses that bought between $40,919.92 and $55,413.77, shows that a majority (83.17%) of addresses are making a profit. This is a hugely bullish signal and shows that the majority of Bitcoin holders are well into the money. As the price continues to rise as the crypto approaches the $50,000 mark, more and more addresses are likely to start making profits.
Bitcoin is ready to continue to shine
With over 90% of Bitcoin addresses making profits and the price approaching $50,000, it is clear that this bull run still has room. Last week’s bullish action saw BTC close above $44,000 on the weekly time frame for the first time in the current market cycle.
BTCUSD currently trading at $48,354 on the daily chart: TradingView.com
BitMEX research recently reported those spot Bitcoin ETFs now have over $10 billion worth of BTC under management. There is a good chance that the price of the top coin will continue to rise if activity around these exchange-traded funds (ETFs) continues at this pace.
Bitcoin ETF Flow – February 9
All data out. Strong day with net inflows of $541.5 million
Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3
— BitMEX Research (@BitMEXResearch) February 10, 2024
Another catalyst for continued price appreciation is the upcoming halving. Historically speakingBitcoin bull runs leading up to each halving have always been upward, turning parabolic after the halving. A similar trend could see crypto assets reach $60,000 before the next halving in April and $100,000 before the end of the year.
Featured image from Adobe Stock, chart from TradingView
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