Victor Ugochukwu · Oct 30, 2020 . 8min read
89.28% Bitcoin Addresses are in profit says Intotheblock data firm
Amidst a surge in Bitcoin prices, data by blockchain analytics firm Intotheblock claims 89.28% of Bitcoin addresses are currently in profit.
By Komal Joshi · Oct 13, 2020 . 5min read
Intotheblock, a blockchain analytics firm, has unveiled an on-chain data demanding that 89.28% of the Bitcoin addresses are in profit. According to the data, approximately there are 31.94 million BTC addresses with balance, and 28.5 million are currently in profit.
There are now 31.94 million addresses with a balance in $BTC. Throughout 2020, the number of addresses with a balance in BTC has increased by 11.9%. And from those 31.94m addresses, 89.28% are profiting from their positions or “in the money” #Bitcoin has a strong bottom!Intotheblock on Twitter
Mid-term Bitcoin price cycle: Optimistic or Pessimistic
According to an analyst at Intotheblock, the figure displays a comprehensive assertive factor for the medium-term price cycle of Bitcoin. Due to such a vast number of addresses being in profit, the perception is that the BTC price cycle is quite optimistic.
During the past seven months, the price of BTC has performed in such a way that the maximum number of Bitcoin users are in profits now. Nevertheless, there is another side as well where the users might be intending to sell their Bitcoins because they are profiting.
Moreover, one could analyze the data as a potentially negative statistic because it indicates buyers would want to sell BTC. Maximum of the Bitcoin Whales wait to join into the situation where they are profitable, and then they manage to sell their BTC. While on the other hand, retail investors do not have any particular patterns for selling BTC. However, it is still considered that retail investors must be prepared to sell their Bitcoins when it is profitable.
Retail Investors perspective on trading Bitcoin currently?
Even though hypothetically the retail investors might be enthusiastic about selling their BTC when they are in profit, data by Intotheblock insinuates something else. According to the on-chain data, retail investors are unlikely to sell their Bitcoin holdings at present. Moreover, Bitcoin exchange reserves have declined significantly. This symbolizes a bullish phase for BTC in the fourth quarter. This is the reason why retail investors might not trade their BTC holdings. Thus, waiting for further price appreciation.
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Komal Joshi · Oct 30, 2020 . 5min read