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December 5, 2022
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83% of bitcoin addresses are profiting

A Glassnode chart reveals that, at the moment, about 83% of bitcoin addresses are profiting.

This chart examines Bitcoin held at public addresses and compares the price when they were received with the current one.

From December 2018 to March 2019, this percentage was less than 50%, with more than half of the addresses profiting.

At that time, the price was below $ 7,000, but by mid-May 2019, the price was above $ 7,000, with more than 50% of addresses profiting.

In June of last year, when the price exceeded $ 12,000, the profitable addresses exceeded 80% and remained in positive territory, even after the fall in August.

Since then, that percentage has always remained above 50%, until the collapse in mid-March 2020, when for a few days it fell below that threshold again.

But then the price went up and now that percentage is over 80%.

This means that 80% of addresses received bitcoin at a lower price than the current one.

There is no guarantee that the BTC received at an address represents a purchase, as it may have been simply a transfer from one address to another owned by the same person or payments for goods, works or services.

However, the fact that this percentage is well above 50% leads to the assumption that most people who bought bitcoin and still own it are also profiting today.

In addition, the highest percentage of profitable addresses this year, almost 90%, occurred on June 1, when the price of bitcoin rose above $ 10,000.

This suggests that in the event that the price exceeds $ 10,000 again, the vast majority of people who bought bitcoin will make a profit.

The highest percentage after the collapse in early 2018 occurred on June 26, 2019, when it rose to 95% when the BTC price exceeded $ 13,000.

It is worth remembering that, according to Chainalysis, most BTCs belong to people who keep them for a long time, that is, as a long-term investment, and this partly explains why, whenever the price increases significantly, most addresses enter profit.

Over 60% of all bitcoin in circulation is held for a long time, while only 19% is traded daily on stock exchanges.

Obviously, those who bought BTC during the speculative bubble in late 2017, when the price reached $ 20,000, are still at a huge loss, but it is possible that a significant part of them have already sold the bitcoin they bought at that time.

Source: cryptonomist

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