Crypto Market Sees Over 80% of Bitcoin Addresses in Profit Despite 50% Price Drop

Crypto Market Sees Over 80% of Bitcoin Addresses in Profit Despite 50% Price Drop

Crypto News – Despite Bitcoin’s price trading 50% below its all-time high, a recent report from the on-chain analytics firm Glassnode reveals that more than 80% of Bitcoin addresses are currently “in the black” at a price of $34,000. This data underscores the resilient profitability of Bitcoin investors, even in the face of a significant price decrease.

As of October 30, Glassnode data indicates that there were 39.1 million Bitcoin addresses in profit, marking the highest number ever recorded. This surpasses the previous peak of 38.1 million observed in November 2021 when Bitcoin was trading at its all-time high. Notably, during that time, every Bitcoin address with a non-zero balance was in profit.

Although the current Bitcoin spot price is still 50% lower than its all-time high, the total number of non-zero addresses has grown to 48.3 million. In percentage terms, the proportion of addresses in profit, while not reaching the levels seen in absolute numbers, has reached an 18-month high at 81.1%. This represents a significant increase from 60% over the past two months, as reported by Glassnode.

In contrast, the number of addresses at a loss stands at just over 9 million, a notable decrease from their peak in December 2022, following the FTX exchange incident when the total stood at over 20 million.

Recent market developments have led to Bitcoin’s price surging to near 18-month highs, allowing both long-term (LTH) and short-term (STH) holders to reap profits. However, this surge has also sparked profit-taking among the more speculative end of the investor spectrum, especially as Bitcoin’s price surpassed $34,000.

James Van Straten, a research and data analyst at the crypto insights firm CryptoSlate, has emphasized the varying attitudes among different investor groups. He notes that Bitcoin has displayed remarkable strength above the $34,000 mark over the past five days while experiencing strong profit-taking from short-term holders. In contrast, long-term holders have been less inclined to move their holdings, representing minimal profit-taking overall, despite being the sixth-largest such event this year.

Accompanying charts from Glassnode track inflows to exchanges from long-term holders and in-profit short-term holder entities. This data reflects the complex dynamics at play in the crypto market, with Bitcoin addresses demonstrating varying levels of profitability and commitment to holding their assets.