85 Percent Of Bitcoin Holders Are In Profit
More BTC addresses are in profit, as long-term holding increasingly characterizes ownership.
The recent increase in price means that the vast majority of bitcoin holders are now in profit, according to data from blockchain analytics site IntoTheBlock.
At $37,000, 79% of holders are in profit, 5% are breaking even, and 16% remain in the red. At $37,500, that increases to 84% in profit. As BTC closes in on the $38,000 mark, the percentage of holders in profit is roughly 85%.
Parsing The Blockchain
IntoTheBlock's model works by parsing the entire Bitcoin blockchain and determining the point at which every UTXO (a chunk of coins recorded on the chain) was last moved. This is easily done due to the presence of timestamps in each block.
It then checks the price of BTC at the time for each UTXO from publicly available exchange data, allowing a clear picture to be built up of how valuable BTC was when those transactions were made. This can then be compared against the current price, to see whether those accounts are in profit or not.
Of course, the model is not perfect. It assumes that coins are moved after purchase and remain where they are until they are traded, which is obviously not the case. Many coins will be moved to another wallet some time after they were purchased (or mined), meaning the price may be higher or lower.
Still, in the aggregate, the model provides a good overview of the percentage of bitcoin holders who are in profit at any given time.
The statistic indicates that weaker hands have been flushed out of the market, and that those who remain are more inclined to hold—since selling reprices a UTXO at the current value.
This is confirmed by analyses that show holders have been accumulating coins for the long term. The Bitcoin HODL Waves chart shows that the percentage of coins being held for at least two years has risen dramatically over the past year: BTC purchased since the bear market bottomed out has been hoarded.
Interestingly, 16% of bitcoins have been held for more than 10 years, a further 5% between 7 and 10 years, and another 10.6% for 5-7 years.
The fall in shorter-term holders (i.e. active traders) aligns with evidence that bitcoins are being removed from exchanges. According to industry site CoinGlass, the number of BTC being held on-exchange sits at 1.82 million, a historically low level.
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