Bitcoin is approaching the $50,000 mark after a week of extreme bullish price action, a level not seen since December 2021. Amid this price surge, the number of Bitcoin addresses with profits exceeded 90%.
According to IntoTheBlock, 91% of Bitcoin addresses are currently profitable. This means that the vast majority of holders and investors have an incentive to continue holding them, especially as the next Bitcoin miner halving approaches.
91% of Bitcoin Addresses Now in Profit as Price Approaches $50,000
Bitcoin had a busy week in terms of price action. The world's largest cryptocurrency recently surged 14.4% to hit $48,500 on February 11, its highest point in 26 months. This price jump, while highly anticipated, appears to have taken most investors by surprise, given that it comes four weeks of underwhelming action after the debut of spot Bitcoin ETFs in the US.
Notably, IntoTheBlock's “Global Money In/Out” profitability metric shows that the total number of addresses generating profit is now 46.87 million addresses, which is 90.53% of the total number of 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.
Likewise, IntoTheBlock's Money In/Out Around Price metric, which takes into account addresses purchased between $40,919.92 and $55,413.77, shows that the majority (83.17%) of addresses are profitable. This is an extremely bullish signal, showing that the majority of Bitcoin holders are well-endowed. As the price continues to rise and the cryptocurrency approaches the $50,000 mark, more and more addresses are likely to turn a profit.
Bitcoin is set to continue to shine
With over 90% of Bitcoin addresses now profitable and the price approaching $50,000, it's clear that this bull run still has some room to grow. As a result of last week's bullish move, BTC closed above $44,000 on the weekly chart 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 that 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 activity around these exchange-traded funds (ETFs) continues at the same pace.
Bitcoin ETF Flow – 9th Feb
All data out. Strong day at $541.5m of net inflow
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 sustained price growth is the upcoming halving. Historically, Bitcoin's bullish move before each halving always trended upward and became parabolic after the halving event. A similar trend could see the cryptocurrency 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.