Amid a 31% decline from its historical peak, a significant development surfaces: more than 90% of Bitcoin addresses are presently in a profitable state, as indicated by insights from IntoTheBlock’s on-chain analysis. This milestone reflects recurring patterns in Bitcoin’s historical bull cycles. This further prompts speculation about whether holders will persist in holding their assets or choose to take profits given the prevailing market conditions.
Profitability of 90% of Bitcoin Addresses
The analysis conducted by IntoTheBlock discloses that the recent upswing in Bitcoin prices, surpassing the $46,000 threshold, has pushed over 90% of all BTC addresses into a profitable state. This high level of profitability is not an isolated incident but rather a consistent trend observed in Bitcoin’s historical bull cycles. The surge in addresses experiencing profitability sparks discussions about potential sell-offs. This comes as investors contemplate seizing the opportunity to capitalize on their accrued gains.
False Alarm Regarding SEC Approval
Recent fluctuations in the market were triggered by a misleading post on the US Securities and Exchange Commission’s official X account. It falsely asserted the approval of the first-ever US spot bitcoin exchange-traded funds (ETFs). This post resulted in a brief 1.5% increase in Bitcoin’s price. However, it was subsequently debunked by SEC Chair Gary Gensler, leading to a subsequent 3.4% decline.
Also Read: Spot Bitcoin ETF Could Push BTC Price to $200k: Standard Chartered
Market Impact and Liquidations
The dissemination of inaccurate information prompted the liquidation of over $300 million in Bitcoin markets. This further exposed the market’s vulnerability to false news. This incident raises questions about the potential for a “sell the news” event or whether it could contribute to a mini bull cycle reminiscent of a similar occurrence three months prior.
Current Status of Bitcoin
At the time of reporting, Bitcoin is being traded at $46,035.10, experiencing a 1.74% daily decline. The recent volatility in response to misinformation underscores the delicate nature of cryptocurrency markets. It also emphasizes the importance of careful consideration for investors.
Also Read: What is Valkyrie’s Spot Bitcoin ETF Ticker?
The revelation that over 90% of Bitcoin addresses are currently in a profitable state presents a pivotal decision for holders. This includes whether to retain their assets or capitalize on gains amid the current market fluctuations. With positive sentiment prevailing across major cryptocurrencies, the impact of recent market turbulence and misinformation serves as a reminder of the necessity for cautious and informed decision-making in the continually evolving crypto landscape. Investors are now confronted with the challenge of navigating uncertainties while assessing the broader implications for the cryptocurrency market.