Record Number of Bitcoin Addresses in Profit Despite Price Below All-Time Highs

Bitcoin (BTC) has reached an intriguing milestone as the number of wallet addresses in profit has surged to an all-time high, even though the cryptocurrency’s price remains around 50% below its all-time high levels. Data from the on-chain analytics firm Glassnode reveals that there are now nearly 39.1 million Bitcoin addresses “in the black,” marking a new record.

This figure surpasses the previous peak of 38.1 million addresses in profit, which was recorded in November 2021 when BTC/USD reached its all-time high. Despite the current BTC price trading at levels significantly lower than its previous peak, a total of 48.3 million non-zero addresses now exist.

In terms of percentages, addresses in profit have not yet reached their peak but are at an 18-month high of 81.1%. This represents a notable increase from 60% to 80% over the past two months. On the other hand, addresses at a loss currently number just over 9 million, a significant improvement from the peak of over 20 million in December 2022, which followed the FTX exchange incident.

The recent performance of BTC, which has neared 18-month highs, has had a substantial impact on investor profitability. Both long-term and short-term holders have seen returns on their investments, leading to a surge in profit-taking activities, particularly as BTC surpassed the $34,000 price level. This dynamic reflects different mentalities between various cohorts of BTC holders.

Long-term holders (LTHs) have shown minimal profit-taking activity, highlighting their commitment to holding BTC over extended periods. In contrast, short-term holders (STHs) have engaged in significant profit-taking in the past two years, especially as BTC reached levels above $34,000.

This disparity in profit-taking behavior underscores the contrasting strategies employed by different types of Bitcoin holders. Despite price fluctuations, Bitcoin continues to demonstrate resilience and strength, with recent data indicating a healthy balance between long-term and short-term investors.

By Urik

My professional background is in public relations and I am the founder of Cryptochating. My journey into blockchain technology started four years ago, and I haven't looked back since then. The future of decentralized technology is incredibly fascinating to me, and I am passionate about communicating how it will change the world.

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