Recent chain analysis shows that approximately 95% of all bitcoin holders are in the money due to the recent uptrend that the cryptocurrency experienced. It is noted that there are very few addresses in loss.

Very Few Bitcoin Addresses Are Still Underwater

IntoTheBlock, a provider of blockchain analytics, has provided an insight into the present level of holder returns. They have done this by employing on-chain information to assess how these factors affect the economy.

Handling, ownership records on the network of Bitcoin have also been analyzed by IntoTheBlock’s analysts. These analysts analyzed when the coins were purchased in terms of the average price at which the coins were purchased. A net profit that has yet to be realized is estimated to exist for wallets with a cost basis that is less than the value at which it is now held.

In a similar vein, the addresses of the opposite type are regarded as loss sustainers. The analytics firm calls the former ‘in the money’ and the latter – ‘out of the money.’

Of course, the wallets which average purchase price is equal to the last quoted price of the cryptocurrency, would simply recover their investment. They would be referred to as “at the money.”

Now let us examine what the address distribution across the three categories looks like on the Bitcoin network at the moment:

As can be seen, up to 95% of the Bitcoin holders that exist today are in profit. More than 3% of the remaining are at the break even point, while the last 2% are in loss.

This way, the distribution of the market is now significantly biased with respect to profit holders. This is due to the recent positioning of the price of the asset.

“Given that 95% of Bitcoin addresses now make a profit, general market conditions are very strong,” draws attention to IntoTheBlock. “In the past, the market has always responded positively to this level of concentration, but it may also suggest an overbought situation.”

In general, a gain mostly means that the investors will look to offload their coins at almost any time, thus most of them being in the green means that the likelihood of a mass selling spree with the aim of taking profits is high. This explains why a high profitability ratio seldom leads to extreme bullishness of the market.

A great number of addresses sustain a profit for the time being, which means that it is entirely possible the market had another profit taking event. It is unclear whether demand would be sufficient to soak up the selling action or if for Bitcoin, a peak would be reached.

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On a more bullish sentiment, there has been an increase in the Bitcoin inflows to the “accumulation addresses” recently, something that the community manager of CryptoQuant Maartunn has noted in an X post.

The accumulation addresses are defined as the wallets that never have any selling activity history on the network. These everlasting HODLers have recently added another whopping 56,700 btc to their wallet which may point out towards them entering the accumulation phase once again.

BTC Price

Bitcoin has continued to command a market price of around 67,400, which is more than a sy 11 percent increase in the past week as well.

At the time of writing, Bitcoin is hovering around 67,400 and is up over 11% in the past week.

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