The volume of Bitcoin addresses in profit has increased significantly and is currently around 90%.

Bitcoin Addresses Keeps Growing

Amongst several cryptocurrencies, BTC has successfully stood out as its total addresses within its network that are profitable now surpasses the 90% threshold. Precisely, Bitcoin’s profitability now places a total of 46.67 million addresses in the money, per the profitability designation by crypto analytics platform IntoTheBlock. 

On the other hand, there are 3.81 million addresses out of the money representing 7.35% of the total addresses. 

Similarly, 1.35 million addresses (2.60%) are at the money or break-even point. Some recent events including the launch of spot Bitcoin ETFs are believed to have contributed significantly to the surge in Bitcoin addresses’ profitability. Since the United States Securities and Exchange Commission (SEC) approved the offering, many institutional investors have delved into the niche.

In the last few days, more retail and institutional investors have shown interest in spot BTC ETFs especially with the recent surge in BTC price. Consequently, this contributed to a net inflow of $541.5 million on February 9.

While this profitability figure is unstable and may change at any time, Bitcoin address profitability is a crucial metric that demonstrates that the network is experiencing significant growth, that is, the health status of Bitcoin and to what degree. 

The Emergence of Institutional HODLers

At the time of this writing, BTC was trading at $47,259.87 with a 0.10% increase within the last 24 hours and it is steadily moving towards $50,000. Potentially, a surge in the profitability of Bitcoin addresses could lead to traders HODLing their Bitcoin holdings and as such, temporary selloff pressure will not be in the market. 

Some market experts strongly believe that a bull market is inevitable at this point. 

Markedly, institutional HODLers are gradually emerging and establishing their position in the Bitcoin market. A typical example is the numerous institutions delving into spot Bitcoin ETFs.

Business intelligence software company MicroStrategy recently increased its Bitcoin holdings to 190,000 BTC after purchasing 850 units in January and is still keen on buying more of the flagship cryptocurrency. Seeing that there seem to be prospect in this ecosystem, it is likely that more institutional investors will emerge in the coming months.

The post Bitcoin (BTC) Addresses in Profit Tops 90% as Price Eyes $50K appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am