Cryptocurrency analysis company IntoTheBlock, in its analysis on its official Twitter account bitcoin announced how many of its investors are in profit and how many are in loss.
The analysis company also evaluated the claims that this high profitability rate may cause a sell-off in the price of Bitcoin in the near future after investors start to take profits.
IntoTheBlock Analysts Evaluate Bitcoin Overall
The latest report from IntoTheBlock reveals that over 72% of Bitcoin holders are currently making profits.
IntoTheBlock’s report suggests that the cryptocurrency market is showing a positive trend, but many traders question whether the number of profits at current prices will prevent Bitcoin from reaching all-time highs anytime soon.
To answer this question, the report examines the previous cycle where Bitcoin holders were close to breaking the 90% profitability limit when the price was around $11,000.
Interestingly, this did not lead to a sale as many feared. Instead, people continued to add to their positions during the upward move, even though small decreases in price temporarily reduced the number of profiteers. According to analysts, this eventually led to BTC reaching its all-time high of $69,000.
According to analysts, this data shows that Bitcoin holders believe firmly in BTC during a bull rally and may continue to add to their portfolios over time.
According to IntoTheBlock, even if Bitcoin reaches a point where more than 90% of people will be in profit, like the situation in 2020, there is no reason why the price should not go higher. This offers a positive view of Bitcoin’s strong bullish potential.
While the report doesn’t guarantee that Bitcoin will hit all-time highs anytime soon, it does show that the fact that people are already profitable doesn’t necessarily create selling pressure. This means that investors can hold their Bitcoin with confidence knowing that there is still growth potential in the future.
*Not investment advice.
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