Data Shows 94% of BTC Holdings Are Profitable

The number of Bitcoin (BTC) addresses showing a profit has seen a major jump following Bitcoin’s recent price gain, which pushed it above $65,000. According to IntoTheBlock’s data, more than 50.67 million BTC addresses bought the digital currency for less than $65,500, representing around 94% of all Bitcoin holders.

On the flip side, approximately 6% of BTC addresses—roughly 3.37 million—purchased the crypto at around $68,139, holding a collective volume of 1.58 million Bitcoins. Out of the total, more than 80,000 active BTC addresses are currently in profit, while approximately 247,000 addresses are at the breakeven point. In contrast, only 3,440 addresses are experiencing losses currently.

This situation is somewhat similar to what occurred in September when BTC dropped from $65,800 on September 28 to $60,000 by October 3; traders and investors seemed to be focused on short-term gains. The current price movement suggests that Bitcoin might be hitting a local peak, with market action unfolding without any long-term triggers.

One of the factors driving Bitcoin’s recent price surge is the dramatic rise in short-position liquidations. Prices often rise as a result of buying pressure created when short sellers are compelled to close their positions.

This is not a novel circumstance for BTC holders, as they have previously experienced financial gain. A report from crypto.news shows that more than $145 million worth of crypto was liquidated within the last 24 hours, with $63 million of that amount coming from BTC.

Additionally, inflows of $555.9 million into U.S.-based Bitcoin spot ETFs have further boosted optimism among traders and investors, contributing to the upward momentum.

Even with a recent market correction, Bitcoin’s price remains strong, up by 1.8% in the last 24 hours, trading at $65,750. The crypto’s total market capitalization stands at $1.3 trillion, with daily trading volumes of $40 billion.

Looking at BTC’s technical indicators, its Relative Strength Index (RSI) is currently hovering around 64, suggesting that the asset is somewhat overbought. However, if the RSI declines toward the 50 mark, further price increases could be anticipated.

A recent analysis by CryptoQuant points out that most long-term BTC holders are choosing not to sell their coins as they expect the price to rise further, bolstered by the strong institutional interest. This indicates that the holders aren’t taking profits just yet, which could reduce selling pressure on BTC and potentially allow its price to continue climbing in the days ahead.

The gains made by those with BTC holdings could trigger a ripple effect that rubs off on other industry actors like BitFuFu Inc. (NASDAQ: FUFU) that have carved out a niche for themselves within the crypto industry.

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