Over 39 million Bitcoin addresses are currently in profit, indicating resilience and contrasting investor mindsets
Despite Bitcoin's price being at half of its all-time high, over 39 million Bitcoin addresses are currently in profit, according to blockchain analytics firm Glassnode. This means that the majority of Bitcoin holders have seen gains, even with the price of Bitcoin hovering around $34,000. This data underscores the resilience of Bitcoin and the contrasting mindsets between long-term and short-term investors.
While short-term investors have been capitalizing on the situation and taking profits, long-term investors have been holding onto their assets. This difference in strategy between the two types of investors is a key factor in the current state of the Bitcoin market.
Bitcoin has set a new record with nearly 40 million wallet addresses in profit, despite the price of BTC being 50% below its all-time high. This suggests that even though the current spot price is lower, the number of addresses in profit has increased. The percentage of addresses in profit is at an 18-month high of 81.1%.
This increase in profitability has led to profit-taking among short-term holders. This trend indicates that these investors are taking advantage of the current market conditions to secure gains, rather than holding onto their assets for the long term.
The current state of the Bitcoin market highlights the robustness of the cryptocurrency, even in times of lower prices. The record number of profitable addresses indicates a healthy market, with both short-term and long-term investors playing their part. Short-term investors are taking profits, contributing to market liquidity, while long-term investors are holding onto their assets, demonstrating their faith in Bitcoin's long-term potential.