The latest statistics show that the value of over three-fourths (76.05%) of all existing bitcoin is in profit, which is currently higher than the last time it was moved. While this ratio is unstable, it has actually remained above 50% for almost the entire Bitcoin history.
“Hold and wait” still existing in 2020
We can expect that there is a strong connection between the ratio of bitcoin currently in profit and BTC price. At the time when BTC price has been skyrocketed to all-time and local highs, then profitability numbers will increase as well.
Similarly, in some darkest times when the price crashes following price highs, the percentage of BTC in profit will go down. Notably, rarely to lower than 50%, and never be less than 40%.
Bitcoin: Percent Supply in Profit in 2019 (7d Moving Average) I Source: Fintonism
Boom and bust cycles saw profitability numbers dropped below half of all bitcoin in 2011, 2015, and 2019. Still, the lowest ever recorded value was still 40.5%, following the crash from over $1,100 down to $226.
Even at that time, over 40% of bitcoin held still made a profit, showing both the benefit and popularity of a long-term hodling strategy.
High prices coming along with high profitabilities
The rapid growth period from the end of 2016 through to the end of 2017 showed the benefit that a long-drawn uptrend could bring back. The percentage of flowing bitcoin in profit never be under 80%.
In fact, there were two times which was occurred in early May and November in 2017, profitability numbers were at recorded peak levels of over 99%, respectively $1575 and $7234.
The slump through 2018 witnessed profits dropped to only 41.5% of circulating bitcoin, although 2019’s rally brought numbers back up to over 92% in June. Profitability numbers followed price back down, but only 56%, before rising up to their current numbers of 76.05%.
Hodl for long-term profits
Bitcoin price has obviously spent the past week on an uptrend trajectory, plus over $1,000 in the course of the past five days, which means that the current profitability percentage is probably to be even higher.
BTC price has this year broke the January tradition by having an incredible month. As the month almost comes to an end, bitcoin is up 32%, if repeated every month for the rest of the year, we would see BTC closeout 2020 with a price of over $150k.
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