Over 65% of Bitcoin Wallets Are in Profit
A recent report from AltIndex.com reveals that more than 65% of Bitcoin wallets are currently in profit. This is a significant increase compared to September last year, indicating that the number of investors who have made money from investing in Bitcoin has grown. The figure refers to public addresses, not wallets, but the same reasoning can be applied to wallets as well. It’s important to note that Bitcoin wallets often have multiple public addresses, while exchanges store Bitcoins from different people.
The Calculation of Profit
The calculation of profit is not precise, but it gives a good estimate. Since all BTC transactions on the blockchain are public, an estimate is made based on the hypothetical purchase price of the BTCs still held in the wallets when they were received. Only BTC held on individual addresses are taken into account, excluding those already sent to other addresses. This estimate shows that 65% of Bitcoin addresses currently hold BTC with a total value higher than their market value at the time of receipt.
Difference with Ethereum
In contrast to Bitcoin, the number of Ethereum addresses in profit has declined over the years. Glassnode data shows that currently, 53.2% of Ethereum addresses are in profit, compared to 55.7% in September last year, despite a 20% increase in ETH price during this period.
Investors in Bitcoin
AltIndex.com reports that there are now over one million addresses holding at least 1 BTC in their wallets. Bitcoin has seen an increase in both retail and institutional investors with higher investment shares. The number of addresses with at least 1 BTC has increased by 100,000 since September 2022, while the number of addresses with at least 10 BTC has risen by 5% to over 157,000. However, the number of addresses with at least 100 BTC remained unchanged, and the number of addresses with at least 1,000 BTC even decreased by 6%.
Bitcoin: Accumulation Period and Profitable Wallets
The data suggests that 2023 is an accumulation year for many long-term investors in Bitcoin. Short-term traders are selling BTC, while long-term investors are buying. This explains the increase in profitable addresses since September 2022 when the price of BTC was lower. Those who bought BTC in the past 12 months were likely interested in holding them for the long term rather than short-term speculation.
Hot Take: Bitcoin Investors Benefit as Over 65% of Wallets Are in Profit
Recent data shows that more than 65% of Bitcoin wallets are currently in profit, indicating that a significant number of investors have made money from their Bitcoin investments. This increase from last year demonstrates the growing success of Bitcoin as an investment option. The calculation of profit is estimated based on public addresses and provides a good idea of the overall profitability. Additionally, Ethereum has seen a decline in profitable addresses despite an increase in its price. Overall, these findings highlight the positive returns that Bitcoin investors have experienced and reinforce its appeal as a long-term investment.
By
By
By
By
By