Despite Bitcoin (BTC) trading at around 50% below its all-time highs, a significant milestone has been reached: a staggering 80% of Bitcoin addresses are currently in profit at the $34,000 price level.
This data is based on the latest findings from on-chain analytics firm Glassnode, which has unveiled record-breaking statistics in the world of Bitcoin.
At the end of October, Glassnode’s data revealed that there were a record 39.1 million Bitcoin addresses “in the black.” This figure surpasses the previous peak of 38.1 million, observed in November 2021, when BTC/USD was trading at its all-time highs, ensuring that 100% of Bitcoin addresses with a non-zero balance were in profit.
Despite the current Bitcoin price remaining significantly below its previous all-time highs, there are now a total of 48.3 million non-zero addresses, showcasing the growing interest and participation in the cryptocurrency.
In terms of percentages, addresses in profit have surged to 81.1%, marking an 18-month high, having risen from 60% to 80% over the past two months.
Conversely, the number of addresses at a loss stands at slightly over 9 million, which is a significant drop from the peak of over 20 million in December 2022, following the FTX exchange incident.
Notably, the recent surge in Bitcoin’s price has managed to push both long-term (LTH) and short-term (STH) holders into profit territory. This achievement has prompted profit-taking activities, especially among more speculative investors, as the market reached the $34,000 threshold.
James Van Straten, a research and data analyst at CryptoSlate, has highlighted the stark contrast in behavior between these different cohorts of investors. He pointed out that while Bitcoin demonstrated remarkable strength above the $34,000 mark for the past five days, it also witnessed one of the most significant profit-taking events in the last two years, primarily from short-term holders (STHs).
On the other hand, long-term holders (LTHs) have shown a minimal response to profit-taking, marking only the sixth-largest event of this kind in the current year, emphasizing their steadfast commitment to their Bitcoin holdings.
Accompanying charts from Glassnode have tracked the inflows to exchanges from long-term holders and in-profit short-term holder entities, shedding further light on the evolving dynamics within the Bitcoin ecosystem.