Bitcoin price has been on the decline again, but up to 75% of BTC addresses are in profit
Bitcoin price has dropped back recently, but new insights from blockchain analytics firm Glassnode show that up to 75% of Bitcoin addresses are profitable.
Three-quarters of BTC addresses still in profit despite Bitcoin price decline
In the Week-On Chain report published on Monday, April 11, Glassnode analyzed the number of profitable Bitcoin wallets and discovered that between 70% and 75% of addresses are experiencing unrealized profits, which is much higher than 45% 50% of addresses during the 2018 bear market.
Commenting on these findings, Glassnode analysts added that the current bear market is not as bad as previous ones:
“The current bear market is not as severe as the worst phases of all prior cycles, with just 25% to 30% of the market being at an unrealized loss. It remains to be seen if further sell-side pressure will drive the market lower, thus pulling more of the market into an unrealized loss like prior cycles.”
The report further revealed that long-term Bitcoin holders, who have held for more than 155 days, are least likely to suffer a loss. More than 67.5% of long-term holders are in unrealized profits, while short-term holders, who hold for less than 155 days, see only 7.88% making a profit.
Currently, Bitcoin price is below $40,000 and down by nearly $39,000 in the past 24 hours, which has placed the asset back into the bear market territory. The trend that Bitcoin will lead has some speculation down to $30,000, while other data shows traders trying to push the price to $50,000.
The report also details that 58% of volume on the Bitcoin network is known as “profit dominance,” a metric that hasn’t been observed much since December 2021.
Glassnode added that bear markets often see volume losses over long periods, and this reversal to dominance could be a sign that sentiment is changing, with demand for Bitcoin able to buy the sell-side.
“Given prices continue to struggle, it does suggest that the demand side remains somewhat lackluster and that investors are taking profits into whatever market strength can be found,” Glassnode stated.
The analysts added that the market had seen daily realized profits of around 13,300 BTC since mid-February. In comparison, actual daily losses dropped from approximately 20,000 BTC in January to about 8,300 BTC last week.
According to analysts, while a large percentage of addresses and transactions are profitable, the overall user base on the Bitcoin network and the volume of transactions continue to “decline.”
Transactions on the network are around 225,000 daily transactions, similar to the 2018 to 2019 bear market. Transactions have increased since mid-2021, but analysts note that “it is a far cry from the hype cycle observed during bull markets.”
Read more:
- Total Of 686 Bitcoin ATMs Were Installed Around The World In March 2022, Rose From 36,023 On March 1 To 36,709 By April 1
- Bitcoin Price Continued Its Descent, Briefly Dipping Below $40,000 And Tracking Losses In Global Equities