Amid the fluctuating rollercoaster that is the Bitcoin market, an interesting trend has revealed itself. Even though the price of Bitcoin is half of its all-time high, a record nearly 40 million Bitcoin addresses are on “winning” ground.
This means that the vast majority of Bitcoin holders on these addresses have seen gains, even with the price of Bitcoin at around $34,000, 50% below its all-time high.
This data comes from blockchain analytics firm Glassnode and marks a stark contrast to what was experienced in November 2021, when Bitcoin hit its previous peak.
At that time, 100% of Bitcoin addresses with a positive balance were in profit.
Even though Bitcoin’s current price is well below those levels, the number of profitable addresses has surpassed the previous mark, underscoring the robustness of the world’s largest cryptocurrency.
Although in percentage terms, addresses in profit have not yet reached the same level as the all-time high, they are at their highest point in 18 months, with 81.1% of addresses in profit.
MORE INVESTORS ARE SEEING A POSITIVE RETURN IN BITCOIN, EVEN IN TIMES OF VOLATILITY
Importantly, around 9 million Bitcoin addresses are currently in loss.
Although this number is significantly less than the 20 million that were at a loss in December 2022, after an event on the FTX platform, it shows that not all investors have been equally lucky.
Furthermore, this news also sheds light on the differences in mindset between long-term investors and short-term investors.
As the price of Bitcoin surpassed the $34,000 mark, there was a flurry of profit-taking among short-term investors, while long-term investors barely budged, opting to hold their assets rather than sell.
CryptoSlate research and data analyst James Van Straten noted that this situation clearly highlights the difference in mentality between different groups of investors.
#Bitcoin has shown remarkable strength above $34k for the past five days while witnessing one of the strongest profit-takings in the past two years, from STHs.
LTHs have barely budged, the sixth largest profit-taking this year, but minimal in the grand scheme of things. pic.twitter.com/peBuGcsZFE
— James V. Straten (@jimmyvs24) October 29, 2023
This discrepancy underscores how different groups of investors are responding to the volatility of the Bitcoin market.