Bitcoin (BTC) Profitability Slumps as Price Drops
The recent drop in the price of Bitcoin (BTC) has had a negative impact on the overall profitability of the cryptocurrency. Not only has the price fallen, but other important growth metrics have also experienced a decline. For instance, the Daily Active Address (DAA) has dropped by 4.02% to approximately 930,730, according to data from IntoTheBlock.
One of the most significant indicators of this decline in profitability is the decrease in the number of addresses “In the Money.” Currently, there are 50.1 million profitable addresses on the Bitcoin network, accounting for 96.39% of the total. This is a significant decrease from the 100% recorded when Bitcoin reached an All-Time High (ATH) above $73,000 last week.
- The number of addresses “Out of the Money” stands at 870,100 or 1.67% of the total.
- Addresses “at the money” or breakeven point make up 1.01 million or 1.94% of the total.
To regain full profitability, Bitcoin will need to retest the range between $68,992.54 and $72,500.92. This range is considered the ultimate resistance point, with over 870,000 addresses holding a total of 877,770 BTC within it.
Decline in Whale Interest and Volume
During the recent Bitcoin rally, whale buyers were actively accumulating large amounts of BTC. However, data from IntoTheBlock now shows that transactions worth $100,000 and above have decreased by 46.98%. The volume has also dropped from $116.22 billion to $41.32 billion between March 13 and March 16.
These declining metrics indicate a bearish sentiment in the market. However, some analysts view this as a healthy correction that could pave the way for a significant rebound in the near future. With the upcoming spot Bitcoin ETF and halving sentiment, Bitcoin’s price may stabilize around the $65,000 level.
Hot Take: Is This Just a Temporary Setback?
The recent slump in Bitcoin’s profitability and price has raised concerns among investors. However, it’s important to remember that cryptocurrency markets are highly volatile, and corrections are a natural part of the process. Here are some key points to consider:
- Bitcoin’s profitability has decreased due to the drop in its price, but this doesn’t necessarily indicate a long-term trend.
- The decline in whale interest and volume could be seen as a sign of consolidation rather than a bearish indicator.
- The upcoming spot Bitcoin ETF and halving sentiment could bring renewed interest and potentially drive the price back up.
While the current market conditions may seem discouraging, it’s crucial to approach them with caution and consider the bigger picture. Cryptocurrencies have proven to be resilient in the face of adversity, and Bitcoin has consistently shown its ability to recover from setbacks. As an investor, it’s important to stay informed, analyze market trends, and make decisions based on your own risk tolerance and investment strategy.
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