The useful thing about Bitcoin (BTC) and other cryptocurrencies is that with enough information you can study how the market is performing. This makes it relatively easy to measure how many investors make a profit from their investment and who do not. This ratio is now almost as high as it was at its peak in 2021.
Bitcoin traders make huge profits
This is what Philip Swift writes, the founder of the blockchain analysis agency LookIntoBitcoin, on the social media platform so the rest is. To be precise, according to the analytics agency, 96.4% of wallets are in positive territory.
Bitcoin price has risen sharply since the beginning of 2023 and certainly since last September. Almost all of the losses from 2021 have now been made up. At the time of writing, the price is still “only” about 44% of the absolute price All-time high November 2021, thanks to an increase of more than 200%.
It must be emphasized that this measure is not without errors. It only measures the exchange rate when the wallets had coins receive, not if traders bought BTC. In many cases, there is a period of time between the time of purchase and the time the coins are transferred to a specific wallet.
In any case, this information suggests that traders are very willing to move their coins and then leave them behind. It should also be emphasized that the metric measures unrealized profit.
The on-chain Bitcoin data is predominantly bullish
The on-chain data platform CryptoQuant shows a similar picture. Accordingly, around 70% of all Bitcoins are now in the black Ki Young Ju, CEO of CryptoQuant.
The CEO recently stated that he believes Bitcoin could rise to $112,000 this year thanks to the launch of the first US spot ETFs. Last January, these funds saw $9.5 billion in inflows, which could increase market capitalization by $114 billion annually.
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