Over 80% of existing Bitcoin addresses are currently in a state of profit, according to data shared by Glassnode. The amount of BTC addresses in the green are up 43% since the so-called ’Black Thursday’, in which the price of bitcoin crashed by nearly 50%.
At the time, data shows only 45% of all BTC addresses were profitable, representing a low in the year. The new data, shared on social media by Huobi’s Ciara Sun, shows a sharp V-shaped recovery in the existing BTC addresses in a state of profit.
— Ciara Sun (@CiaraHuobi) June 23, 2020
A high in 2020 was hit on June 1, when 89% of addresses were in the green as bitcoin’s price rose above the $10,000 mark. CryptoCompare data shows that, so far this year, bitcoin’s price tested the psychological barrier numerous times, and even though it managed to get to a $10,400 high resistance always saw its price drop soon after.
In June 2019, when the price of bitcoin was at $13,000 after a short-lived rally, 95% of addresses were in a state of profit. Glassnode’s data appears to be bullish, however, as BTC turns bearish when over 95% of addresses are in the green, as it’s a signal it’s overbought.
As CryptoGlobe reported, blockchain analytics firm Chainalysis has published a report earlier this month that shows most bitcoin users are holding onto their coins for the long-term, as its data showed around 60% of addresses have been storing their funds and haven’t sold more than 25% of the BTC they received.
19% of the bitcoin in circulation, according to Chainalysis, is actively being traded. The remaining BTC is being considered lost in wallets that have not moved their funds in at least five years. Bitcoin is, at press time, trading at $9,500.
Featured image via Unsplash.