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Bitcoin Nears $50,000 Milestone Again; 91% of addresses in profit

Bitcoin is is approaching the $50,000 mark mark after a week extremely bullish price movementa level that has not been reached since December 2021. Amid this price surge, the number of Bitcoin addresses making profits has now exceeded over 90%.

According to data from IntoTheBlock, 91% of Bitcoin addresses are currently profitable. This means that the vast majority of holders and investors have an incentive to continue holding, especially as the next halving approaches for Bitcoin miners.

91% of Bitcoin addresses are now making profits as the price approaches $50,000

In terms of price developments, Bitcoin has had an eventful week. The world's largest cryptocurrency recently grew by 14.4%, reaching $48,500 on February 11, its highest level in 26 months. While this price increase was very welcome, it appeared to have caught most investors by surprise, considering it came after four weeks of unimpressive action following the debut of spot Bitcoin ETFs in the US.

Above all, IntoTheBlock's The “Global In/Out of the Money” profitability metric shows that the total number of addresses in profit is now at 46.87 million addresses, representing 90.53% of the total addresses. At the same time, 3.44 million addresses, representing 6.64%, are still experiencing losses, while 1.46 million addresses, representing 2.83% of the total addresses, are at the money or break-even point.

Similarly, IntoTheBlock's “In/Out of the Money Around Price” metric, which tracks addresses that purchased between $40,919.92 and $55,413.77, shows that the majority (83.17%) of addresses are making profits . This is an extremely bullish signal and shows that the majority of Bitcoin holders are well in the money. As the price continues to rise and the cryptocurrency approaches $50,000, more and more addresses are likely to make profits.

Bitcoin will continue to shine

With over 90% of Bitcoin addresses now making profits and the price approaching $50,000, it is clear that this bull market still has room to run. The uptrend last week saw BTC close above $44,000 on the weekly time frame for the first time in the current market cycle.

BTCUSD is currently trading at $48,354 on the daily chart: TradingView.com

BitMEX Research recently reported These spot Bitcoin ETFs now manage over $10 billion worth of BTC. There is a high probability that the price of the top coin will continue to rise if the activity around these exchange traded funds (ETFs) continues at this pace.

See more

Bitcoin ETF Flow – February 9th

All data out. Strong day with a net inflow of $541.5 million

Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3

— BitMEX Research (@BitMEXResearch) February 10, 2024

Another catalyst for a sustained price increase is the upcoming halving. Historical, Bitcoin bull runs leading up to each halving always trended upward and went parabolic after the halving. A similar trend could see the crypto asset reach $60,000 before the next halving in April and $100,000 before the end of the year.

Featured image from Adobe Stock, chart from TradingView

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