Although the price of Bitcoin (BTC), has fallen again in recent months, new insights from blockchain analytics firm Glassnode reveal that as high as 75% of Bitcoin addresses are currently in profit.
Glassnode published its Week-On Chain Report on Monday, April 11. It found that 70% to 75% of Bitcoin wallets are making profit. This is significantly higher than the 45%–50% profit in the 2018 bear market.
The Glassnode analysts commented on the findings and said that the current bear markets are not as bad as the previous ones.
The current bear market isn’t as severe as previous worst phases. Only 25% to 30% of the market is at unrealized losses. It is still unclear if more sell-side pressure will push the market lower and pull more of it into unrealized losses like previous cycles.
According to the report, long-term Bitcoin holders who have been holding for more than 155 days are less likely to lose their Bitcoin. Long-term Bitcoin holders who hold the currency for more than 155 days are most likely to realize a profit. Short-term holders (those who have held it for less than that long) have only seen 7.88% of these gains.
The Bitcoin price is currently below $40,000, and has fallen to close to $39,000 within the last 24 hours. This has put the asset back in bear market territory. Some speculate that Bitcoin will fall to $30,000 while other data suggests that traders are trying to push it to $50,000.
It also revealed that 58% of Bitcoin volume is in “profit dominance”, which it calls a measure that hasn’t been closely observed since December 2021.
Glassnode said that bear markets often see large periods of transaction volume that makes a loss. This could indicate that sentiment is shifting and that Bitcoin demand can buy the sell-side.
Glassnode says that, “given that prices continue to struggle it does suggest that demand remains somewhat weak and that investors are taking profit into whatever market strength is available.”
Analysts stated that market realized profits have been around 13,300 BTC per day since February, while daily realized losses have declined from approximately 20,000 BTC in January to about 8,300 BTC last Week.
Related: Bitcoin price drop to $39.2K places BTC in the ‘bear-market’ territory
While a large number of addresses and transactions make a profit, overall, the number of users on Bitcoin and, subsequently, the volume of transactions is still “languishing”, according to analysts.
The network has around 225,000 transactions per day, which is similar to the bear market of 2018 to 2019. Although transactions have increased since mid-2021, analysts pointed out that it is still far from the hype cycle seen during bull markets.
Eileen Wilson –Technology and Energy
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