Vladislav Sopov
Only 1 in 33 Bitcoin (BTC) on-chain addresses is underwater, says the latest IntoTheBlock report
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Amid skyrocketing Bitcoin (BTC) prices, its on-chain addresses are showing incredible profitability. At the same time, the behavior of long-term BTC holders sends mixed signals to the public.
Bitcoin (BTC) has not been this profitable since November 2021
As Bitcoin (BTC) hit a new local high of around $64,000, over 97% of its on-chain addresses are currently profitable. This is the highest profitability since November 2021, says leading blockchain data provider IntoTheBlock in its latest report “On-Chain Insights: Bitcoin Dynamics Supply vs Demand.”
Analysts added that the last time such a large proportion of profitable addresses were registered, Bitcoin's price was around $69,000, nearing its all-time high.
Both Bitcoin (BTC) and Ethereum (ETH) saw dramatic increases in commissions. Over the past few days, Bitcoin and Ethereum transaction fees have increased by 20.86% and 43.56%, respectively.
Additionally, both Bitcoin (BTC) and Ethereum (ETH) owners are aggressively withdrawing their assets from centralized exchanges. Over the last week, over $1.7 billion worth of BTC and ETH left CEXes, which can also be interpreted as a bullish signal for bulls.
As previously reported by U.Today, Bitcoin (BTC) closed February 2024 with an unprecedented green candle that marked a price increase of $22,000.
The recent growth is due to the growing popularity of Bitcoin spot ETFs, which were recently given the green light in the US
HODLers ready for BTC correction?
At the same time, Bitcoin (BTC) “HODLers”, i.e. long-term investors who have not moved their assets for at least a year, are exhibiting cautious behavior.
In total, 13.6 million BTC (or over 69% of the available supply) are owned by this influential group of investors. At the same time, the indicator recorded a peak in January-February 2024.
As a result, some long-term investors may take profits in anticipation of an impending correction.
Major Bitcoin (BTC) analysts and investors have already issued correction warnings, pointing to a possible 20-25% decline in the coming weeks.
About the author
Vladislav Sopov
Blockchain analyst and author with a scientific background. 6+ years in IT analytics, 3+ years in blockchain.
Participation in independent analysis and start-ups (Swap.online, Monoreto, Attic Lab etc.)
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
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