Bitcoin vs Dogecoin: Profits for Holders
Analysis of holder profitability for top cryptocurrencies like Bitcoin, Ethereum, Dogecoin, Cardano, Avalanche, and Tron reveals interesting insights into investor behavior and market sentiments.
Understanding Holder Profitability
Holder profitability signifies the percentage of investors or addresses on a cryptocurrency network currently holding unrealized gains. By evaluating the average acquisition price of coins for each address against the current spot price, this metric categorizes investors into profit, loss, or no gain categories.
- Addresses with a cost basis lower than the spot price are considered profitable.
- Addresses with a cost basis higher than the spot price are deemed at a loss.
- Addresses with the same cost basis and spot price are breaking even.
Bitcoin Leads in Holder Profitability
The data shows that the top three cryptocurrencies with the highest holder profitability are Bitcoin, Tron, and Dogecoin.
- Bitcoin: 86% of addresses are in profit.
- Tron: 85% of addresses are in profit.
- Dogecoin: 83% of addresses are in profit.
Other Cryptocurrencies’ Profitability Status
While Bitcoin, Tron, and Dogecoin showcase high profitability for holders, Ethereum, Cardano, and Avalanche present a different picture.
- Ethereum: 81% of addresses are in profit.
- Avalanche: 63% of addresses are in profit.
- Cardano: Only 35% of addresses are in profit.
Market Implications of Holder Profitability
The profitability status of investors plays a crucial role in market dynamics, influencing the likelihood of mass selloffs and price movements.
- High profitability can lead to increased selling activity.
- Extreme profitability levels are common during bull markets.
- Low profitability may signal potential for a price rebound.
Price Movement of Bitcoin
Bitcoin’s price has retraced towards $63,200 after a temporary recovery earlier in the week.
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