Bitcoin Wallet Addresses in Profits Surge Despite Lower Prices
Bitcoin addresses with profit hits record numbers while prices remain 50% below peak.
Tue, 31 Oct 2023, 23:54 pm UTC
Despite Bitcoin's price remaining substantially lower than its historic peak, an increasing number of wallet addresses are reaping profits. Recent data from the analytics company Glassnode reveals that the number of Bitcoin wallet addresses registering a profit has reached a record-breaking figure.
As of October 30, there were 39.1 million Bitcoin addresses in profit, surpassing the previous highest count of 38.1 million from November 2021. Notably, during November of the previous year, the Bitcoin-to-US dollar exchange rate reached its zenith, making every existing Bitcoin address with a balance above zero profitable.
Although Bitcoin's current price is 50% below its all-time high, the total number of Bitcoin addresses with a positive balance has risen to 48.3 million. In terms of a percentage, addresses with profits are approaching their highest point in a year and a half, reaching 81.1%. This indicates significant growth, as this figure stood at around 60% just two months ago, according to Glassnode.
However, not everything is rosy. About 9 million Bitcoin addresses are currently at a loss, although this is significantly reduced from the 20 million in December 2022 after the FTX market downturn. Over the past week, Bitcoin's price successfully broke through multiple barriers, leading both long-standing and newer Bitcoin holders into profitable territory. This surge in price and profitability prompted more speculative Bitcoin holders to cash in, especially as Bitcoin's value exceeded $34,000.
James Van Straten, a data and research analyst at the crypto-focused firm CryptoSlate, highlighted the changing dynamics in investor attitudes. He noted that Bitcoin had maintained its position above $34,000 for several consecutive days, experiencing one of the most significant waves of profit-taking from short-term holders in the last two years.
The resilience and current trajectory of Bitcoin have played a crucial role in bringing profitability to a vast majority of its wallet addresses, despite the considerably lower prices compared to its historic highs.
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