Investors have bought almost all of their BTC at a price lower than the one that it currently has. In March 2020, the number of Bitcoin addresses in profit was around only 40%.
Due to the bullish rally that the price of Bitcoin has experienced over the last month, 97% of BTC addresses are in profit. The main cryptocurrency in the market is currently trading above USD 15,000. This means that it is pairing almost all active addresses or leading them into positive territory.
The price of Bitcoin during the bullish run of 2017 touched USD 20,000 per unit. From there, it is possible to deduce that investors have acquired most of their BTC at a price lower than what the markets currently reflect, according to metrics from blockchain analytics firm Glassnode.
The record indicates that 90% of BTC addresses had already started to make a profit since Bitcoin exceeded USD 10,000 in late July 2020. The trend continued until September when the percentage dropped to around 80%. However, between the end of October and the beginning of November, the figure has remained above 95%.
During the first week of the year, the percentage of addresses in profit was about 57%, which currently shows an increase of 40%. For this, it is necessary to take into account that Bitcoin started in 2020 with a price of about USD 7,200.
If the first cryptocurrency trades above its all-time high, all Bitcoin addresses will have regained the ground that they lost due to the market collapse in 2018. That does not necessarily imply that traders still hold their positions in BTC. It would rather mean that the addresses used for these operations would reflect an amount similar to the one that they acquired at that time.
Another Year of Volatility for Bitcoin
In this year of large fluctuations, the lowest percentage of addresses in profit was on March 12th at 41%. Members of the Bitcoin ecosystem know it as “Black Thursday”, the date on which Bitcoin lost around 50% of its price.
The announcement of the World Health Organization (WHO) declaring COVID-19 a pandemic was the reason for the drop. This led to massive declines in traditional equity, commodity, derivatives, and cryptocurrency markets.
It is important to know that the pioneering cryptocurrency has recorded its current prices in the past. There were only 20 days on which Bitcoin broke the USD 15,000 barrier. This represents 0.46% of the cryptocurrency’s life.
According to Bitcoin’s price history, it has only been one day above USD 19,000, three days above USD 18,000, six days above USD 17,000, and 14 days above the cap of USD 16,000.
The number of days on which the price of Bitcoin has remained above USD 10,000 is also striking. According to figures from the cryptocurrency ranking website CoinGecko, it has been more than 264 days since the first cryptocurrency reached that threshold.
By Alexander Salazar
