The price of Bitcoin (BTC) has been on the decline again recently, but new insights from blockchain analytics firm Glassnode show that up to 75% of Bitcoin addresses are in profit.
In its Week-On Chain report published on Monday, April 11, Glassnode analyzed the number of Bitcoin wallets that are in profit and found that around 70% to 75% of addresses are seeing an unrealized profit, much higher than the 45% to 50% of addresses during the 2018 bear market.
Commenting on the findings, the Glassnode analysts added that the current bear market is nowhere near as bad as previous ones:
The report further revealed that long-term holders of Bitcoin, those who have held for over 155 days, were the least likely to be at a loss. More than 67.5% of long-term holders are at an unrealized profit, whereas short-term holders, those who have held for less than 155 days, have seen only 7.88% make any gains.
Currently, the Bitcoin price is below $40,000 and dipped close to $39,000 in the last 24 hours, which has placed the asset back into bear market territory. The direction in which Bitcoin will head has some speculating a drop to $30,000, whilst other data shows traders attempting to push the price to $50,000.
The report also detailed that 58% of the volume on the Bitcoin network is in what it terms “profit dominance”, a metric that hasn’t been strongly observed since December 2021.
Glassnode added that bear markets typically see long periods of transaction volume that make a loss, and this reversal to profit dominance could be a sign that sentiment is shifting, with demand for Bitcoin able to buy the sell-side.
However, Glassnode writes, “given prices continue to struggle, it does suggest that the demand side remains somewhat lackluster and
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