Despite Bitcoin Price Drop, These Addresses Continue to Win

Bitcoin (BTC) The price has fallen recently, but according to data from blockchain analytics firm Glassnode, up to 75% of Bitcoin addresses are currently profitable.

3/4 of Bitcoin Addresses Profit

In its Week-On Chain report released Monday, April 11, Glassnode analyzed the number of profitable Bitcoin wallets and found that between 70% and 75% of addresses are currently profitable; this rate is much more than the number of addresses that made a profit in the 2018 bear market.

bitcoin

Glassnode analysts commented on this ratio and stated that the current bear market is not as bad as the previous bear markets.

“The current bear market is less severe than any previous bear market cycle. Only 25% to 30% of the market is at risk of making a loss, but these wallets are still unscathed as they are not selling. Therefore, the market is not expected to experience further losses as before.”

According to another data in the report, it can be seen that long-term investors who hold BTC for more than 155 days are the least likely to experience losses. More than 67.5% of long-term investors are in unrealized profits, while short-term holders holding less than 155 days see only 7.88% profit.

Right now, bitcoin price It is trading around $40,000 and has dropped to around $39,000 in the last 24 hours. This put BTC back in bear market territory. There is some speculation that the trend that Bitcoin will lead is up to $30,000, while other data suggests that the price will try to climb to $50,000 thanks to traders.

The report also details that 58% of the volume on the Bitcoin network is known as “profit dominance,” a measurement hardly observed since December 2021.

bitcoin network volume

“If prices continue to struggle, it shows that the demand side is somewhat sluggish and investors are profiting regardless of market strength,” Glassnode explained.

According to analysts, although some of the addresses and transactions are profitable, the overall user base and transaction volume on the Bitcoin network are still declining. Transactions on the network are in about 225,000 daily transactions, similar to the 2018-2019 bear market. Transactions have increased since mid-2021, but analysts caution that “this is far from the hype cycle observed in bull markets.”

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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