With Bitcoin’s (BTC) price quickly re-approaching its all-time high, almost all holders of the digital currency are back in the black.
Blockchain market intelligence platform IntoTheBlock stated on Wednesday that 95% of Bitcoin addresses are now in profit – the largest share since BTC traded for roughly similar prices in November 2021.
Though profits are great for investors, a big portion of the market being in the green can also mean the market is overheated, and that a large number of holders may take money off the table.
95% of Bitcoin addresses are now in profit!
The last time we saw this level of profitable addresses was during the peak of the 2021 bull market, with prices over $60k pic.twitter.com/MBq95tTKAA
— IntoTheBlock (@intotheblock) February 27, 2024
IntoTheBlock recommends gauging market heat using the MVRV ratio – which measures the “market value” of all BTC against the “realized value” of when they were last traded.
“While it historically signaled a top when MVRV was close to 4, the number has declined every cycle,” the company wrote in a post to X on Tuesday. “The current value is 2.22.”
More on-chain data published by Glassnode suggests that more speculative trading activity is already starting to return to BTC. For example, Bitcoin inflows to exchanges are nearing all-time highs, with those flows predominately coming from short-term holders more likely to be interested in speculative activity.
Bitcoin’s price surged to $57,000 on Monday, breaking another two-year high as Bitcoin ETFs continue absorbing a tsunami of inflows. The newly launched funds took in another $520 million on Monday alone, with BlackRock’s iShares Bitcoin Trust scoring a record $1.3 billion in daily volume.
Several analysts believe Bitcoin
Read more on cryptonews.com