Despite Bitcoin’s price being approximately 50% below its all-time highs, the number of Bitcoin addresses in profit has reached a new record.
According to Glassnode data, in percentage terms, addresses in profit have increased from 60% to 80% in the last two months, reaching a profit level of 81.1% with Bitcoin hovering around $34,000.
This achievement is significant as it demonstrates the strength and resilience of the Bitcoin network. Despite price volatility and fluctuations, a growing number of investors have been able to keep their investments in Bitcoin in profitable territory.
In addition, the total number of non-empty addresses, meaning those that hold some Bitcoin balance, has reached 48.3 million, reflecting the ongoing growth in cryptocurrency adoption.
Bitcoin Attracts New Investors Seeking Profits
This increase is partly due to the entry of new participants into the market. As more individuals and businesses are drawn to the potential of Bitcoin and other cryptocurrencies, the ecosystem expands.
In contrast, the number of addresses at a loss currently exceeds 9 million, although at its peak in December 2022, following the FTX collapse, the total exceeded 20 million.
Profit-taking also varies between short-term (STH) and long-term (LTH) investors, with long-term investors showing a minimal trend of profit-taking compared to short-term investors.
According to James Von Straten, research and data analyst at crypto insights firm CryptoSlate. The differences in profit-taking between short-term and long-term investors suggest a divergence in the mindset of these groups.
“Bitcoin has shown remarkable strength above $34k for the past five days while witnessing one of the strongest profit-takings in the past two years, from STHs.”
According to CoinMarketCap, at the time of writing this note, BTC is trading at $34,198. While it lost 0.34% of its value in the week’s cumulative performance, its price has increased by approximately 27% in the last month.
Its market capitalization slightly surpasses $668 billion, and the trading volume in the last 24 hours was $16 billion.
