Bitcoin has had a turbulent few weeks in terms of price action. The world’s largest cryptocurrency is currently up 19% in the past 7 days and 43% in the past 30 days, which is the highest percentage gain in more than a year. As a result, a large number of BTC addresses have been pushed into the profit zone. For the first time in more than two years, 97% of Bitcoin addresses are profitable.
Number of Bitcoin addresses in profit soars as price surges
According to data from crypto on-chain analytics platform IntoTheBlock, 50.62 million Bitcoin addresses are currently profitable at current price levels. This huge number accounts for more than 97% of the total number of wallet addresses. It is worth noting that the last time holders saw such high profitability was in November 2021, when the price of Bitcoin was around $69,000, close to its all-time high.
It is worth noting that market performance has allowed Bitcoin to continue to rise sharply over the past few months. Just last month, 91% of addresses were profitable. Despite some sporadic selling and profit-taking by some investors trying to break even, the percentage of profitable addresses continues to grow as the huge profitability means that selling pressure no longer has a significant impact.
How long can Bitcoin's upward momentum last?
Bitcoin price has surged over the past few months, recently surpassing $60,000 again. As of this writing, the top cryptocurrency is currently trading at $62,233, with 1.28 million addresses (2.46% of total addresses) at the breakeven point.
The price surge can be attributed to the increase in mainstream adoption in traditional investment sectors, led by spot Bitcoin ETFs. This has ushered in a new wave of holding mentality. In February, 69,244 Bitcoins worth more than $3.6 billion were withdrawn from cryptocurrency exchanges.
Notably, the people who have made the most profit are those who have held Bitcoin for the long term. According to IntoTheBlock, investors who have held the asset for more than a year own 13.6 million Bitcoins.
However, new investors can still expect continued price increases as Bitcoin faces little resistance on its path. Only 0.37% of addresses (193,000) are still waiting to take profits at current prices.
Most experts remain optimistic about Bitcoin’s price potential for the rest of 2024 and beyond. With the bull run in full swing, many traders and cryptocurrency analysts believe that Bitcoin will continue to hit new all-time highs in 2024. Price targets for the year end range from $100,000 to $300,000 per Bitcoin.
