Bitcoin has a eventful few weeks in terms of price action. The world’s largest cryptocurrency is currently up 19% in the past seven days and up 43% in the past 30 days, the highest percentage gain in more than a year. As a result, a large number of BTC addresses have entered the profitability zone. For the first time in over two years, 97% of all Bitcoin addresses are now profitable.
The number of Bitcoin addresses with profits skyrockets as prices rise
According to the crypto on-chain analysis platform InTheBlok50.62 million Bitcoin addresses are currently profitable at the current price level. This huge figure represents more than 97% of the total number of wallet addresses. Notably, the last time holders saw this much profitability was in November 2021, when Bitcoin’s price was around $69,000, near all-time highs.
Interestingly, market developments have ensured that Bitcoin has continued its enormous gains in recent months. Just last month, 91% of the addresses had a profit. Despite some sporadic selling and profit taking by some investors trying to break even, the percentage of addresses showing a profit continues to grow as the huge profitability means that the selling pressure no longer has a significant effect.
How long can Bitcoin maintain this upward momentum?
Bitcoin prices have skyrocketed in recent months, recently topped $60,000 again. The top crypto is currently trading at $62,233 at the time of writing, and 1.28 million addresses, accounting for 2.46% of the total addresses, are at a breakeven point.
Bitcoin is now trading at $62,233. Chart: TradingView.com
The price increase can be attributed to this greater mainstream acceptance in the traditional investment world, led by Discover Bitcoin ETFs. This in turn has led to a new wave of tenacity. In February, 69,244 BTC were worth more than $3.6 billion were withdrawn from crypto exchanges.
Notably, those who have benefited the most are those who have held Bitcoin for the long term. According to IntoTheBlock, 13.6 million Bitcoins are owned by investors who have held onto their assets for more than a year.
However, new investors can still look forward to continued price appreciation as Bitcoin faces virtually little to no resistance. Only 0.37% of addresses (193,000) are still waiting for a profit at the current price.
Most experts remain optimistic about Bitcoin’s price potential for the remainder of 2024 and beyond. With the bull run in full swing, many traders and crypto analysts believe that Bitcoin will continue to reach new all-time highs in 2024. Year-end price targets range from $100,000 to $300,000 per Bitcoin.
Featured image from Pexels, chart from TradingView
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