Even though BTC prices are 50% below their all-time highs, there are more Bitcoin (BTC) wallet addresses than ever before.
this The latest data Data from on-chain analytics company Glassnode shows that the number of “profitable” addresses has hit a record high.
A BTC price of $34,000 puts more than 80% of Bitcoin addresses in profit
Bitcoin may be near an 18-month high, but its recent gains are enough to trigger a significant change in investor profitability.
According to Glassnode data, as of October 30, the number of profitable addresses was 39.1 million.
This is the highest number of Bitcoins ever, surpassing the peak of 38.1 million set in November 2021.
At the time, BTC/USD itself was trading at an all-time high, so 100% of existing non-zero balance addresses were profitable.
While current spot prices are still 50% below these levels, the total number of non-zero addresses has now reached 48.3 million.
On a percentage basis, the absolute number of profitable addresses has not yet matched its performance, but is still at an 18-month high of 81.1%.
Glassnode also shows that this number has increased from 60% to 80% in the past two months.
By comparison, there are just over 9 million addresses currently losing money. Peaking in December 2022 after the FTX crash, the total number exceeded 20 million.
Long term holders see ‘minimal’ profit taking
According to Cointelegraph, BTC price action broke through multiple resistance levels over the past week, benefiting both long-term (LTH) and short-term (STH) holders.
Related: Bitcoin Restarts 2023 Uptrend After Uptober BTC Price Rise 26% — Research
This in turn triggered profit-taking by more speculative holders – especially as the market moved above $34,000.
For James Van Straten, a research and data analyst at cryptocurrency insights firm CryptoSlate, this highlights the differences in mentality among different groups.
“In the past five days, Bitcoin has shown incredible strength above $34,000 while witnessing one of the strongest profit-taking episodes in the past two years from STH,” he debate October 29th.
“LTH was little changed, the sixth biggest profit taking of the year, but minimal in the grand scheme of things.”
The accompanying chart from Glassnode tracks physical inflows of LTH and profitable STH into exchanges.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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