Bitcoin is approaching $50,000 mark after a week of extreme bullish price actiona level not seen since December 2021. Amid this price surge, the number of Bitcoin addresses in profit has now exceeded 90%.
According to data from IntoTheBlock, 91% of Bitcoin addresses are currently profitable. This means that the vast majority of holders and investors are incentivized to continue holding, especially as the next halving for Bitcoin miners approaches.
91% of Bitcoin addresses are now profitable as the price approaches $50,000
Bitcoin has had an eventful week in terms of price action. The world’s largest cryptocurrency recently rose 14.4% to $48,500 on February 11, its highest level in 26 months. This price increase, while very welcome, appears to have surprised most investors given that it came four weeks of unimpressive action after the launch of spot Bitcoin ETFs in the United States.
Notably, In TheBlock The “Global In/Out of the Money” profitability metric shows that the total number of recipient addresses now stands at 46.87 million addresses, or 90.53% of the total addresses. At the same time, 3.44 million addresses representing 6.64% are still showing losses, while 1.46 million addresses representing 2.83% of total addresses are at the money or break-even.
Similarly, IntoTheBlock’s “In/Out of the Money Around Price” metric, which tracks addresses that purchased between $40,919.92 and $55,413.77, shows that a majority (83.17%) of addresses are in profit. This is an extremely bullish signal that shows the majority of Bitcoin holders are well in the money. As the price continues to climb as the crypto approaches the $50,000 mark, more addresses are likely to generate profits.
Bitcoin ready to continue to shine
With over 90% of Bitcoin addresses now in profit and the price close to $50,000, it is clear that this bull run still has room to run. Last week’s bullish action saw BTC close above $44,000 on the weekly timeframe for the first time in the current market cycle.
BTCUSD currently trading at $48,354 on the daily chart: TradingView.com
BitMEX Search recently reported Spot Bitcoin ETFs now have over $10 billion worth of BTC under management. There is a high probability that the price of the top coin will continue to rise if activity surrounding these exchange-traded funds (ETFs) continues at this rate.
Bitcoin ETF Feed – February 9
All data is output. Good day with $541.5 million in net income
Invesco experienced an outflow, the first non-GBTC product to have an exit day pic.twitter.com/UCFDVAaKD3
– BitMEX Research (@BitMEXResearch) February 10, 2024
Another catalyst for a sustainable rise in prices is the upcoming halving. Historically, Bitcoin’s bull runs leading up to each halving have always had an upward trend and turned parabolic after the halving event. A similar trend could see the crypto asset reach $60,000 before the next halving in April and $100,000 before the end of the year.
Featured image from Adobe Stock, chart from TradingView