bitcoin has had a an eventful few weeks in terms of price action. The world's largest cryptocurrency is currently recording a 19% increase in the last seven days and a 43% increase in the last 30 days, its largest percentage increase in over a year. As a result, a large number of btc addresses have been pushed into the profitability zone. For the first time in over two years, 97% of all bitcoin addresses are now making profits.
Number of Profiting bitcoin Addresses Soars as Prices Rise
According to on-chain crypto analysis platform btc/deep-dive?group=financials&chart=inAndOut” target=”_blank” rel=”nofollow”>In the block, 50.62 million bitcoin addresses are currently making profits at the current price level. This huge figure represents more than 97% of the total wallet addresses. Notably, the last time headlines saw this much profitability was in November 2021, when the price of bitcoin was around $69,000, approaching its all-time high.
In particular, market developments have seen bitcoin continue its massive gains in recent months. just last month, 91% of addresses made profits. Despite some sporadic selling and profit taking by some investors trying to break even, the percentage of addresses in profit continues to grow as huge profitability means selling pressure no longer has a significant effect.
How long can bitcoin maintain this upward momentum?
bitcoin prices have skyrocketed in recent months. recently surpassing $60,000 again. The leading cryptocurrency is currently trading at $62,233 at the time of writing, and 1.28 million addresses, representing 2.46% of the total addresses, are at a break-even point.
bitcoin is now trading at $62,233. Chart: TradingView.com
The price increase can be attributed to increased widespread adoption in the traditional investing world led by bitcoin Spot ETF. This, in turn, has given rise to a new wave of holding mentality. In February, 69,244 btc worth more than $3.6 billion were removed from cryptocurrencies exchanges.
In particular, those who have benefited the most are those who have held bitcoin for the long term. According to IntoTheBlock, 13.6 million Bitcoins are in the possession of investors who have held their assets for more than a year.
However, new investors can still expect continued price growth as bitcoin faces virtually little to no resistance in its path. Only 0.37% of addresses (193,000) are still expecting to make profits 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 crypto traders and analysts believe that bitcoin will continue to set new all-time highs in 2024. Price targets for the end of the year range between $100,000 and $300,000 per bitcoin.
Featured image from Pexels, chart from TradingView
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