Amid a 31% decline from its all-time high, a significant development is surfacing: over 90% of Bitcoin addresses are currently in a profitable state, as indicated by on-chain analysis insights from IntoTheBlock. This milestone reflects recurring patterns in Bitcoin’s historical bull cycles. This further sparks speculation on whether holders will persist in holding on to their assets or choose to take profits given current market conditions.
Profitability of 90% of Bitcoin addresses
Analysis conducted by IntoTheBlock reveals that Bitcoin’s recent price rally, 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 increase in the number of profitable addresses is sparking discussions about possible liquidations. This comes as investors look to seize the opportunity to capitalize on their accumulated gains.
False alert regarding SEC approval
The recent market swings were triggered by a misleading posting on the official X account of the United States Securities and Exchange Commission. He falsely claimed approval of the first-ever spot Bitcoin exchange-traded fund (ETF) in the United States. This release led to a brief 1.5% increase in the price of Bitcoin. However, this idea was later debunked by SEC Chairman Gary Gensler, leading to a subsequent 3.4% decline.
Also read: Spot Bitcoin ETF could push BTC price to $200,000: Standard Chartered
Market impact and liquidations
The spread of inaccurate information led to the liquidation of over $300 million in Bitcoin markets. This further exposed the market’s vulnerability to fake news. This incident raises questions about the possibility of a “news selloff” type event or whether it could contribute to a mini bull cycle reminiscent of a similar event three months prior.
Current Status of Bitcoin
At the time of writing, Bitcoin was trading at $46,035.10, experiencing a daily decline of 1.74%. Recent volatility in response to misinformation highlights the delicate nature of cryptocurrency markets. It also highlights the importance of careful attention from 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 is a crucial decision for holders. This includes the need to hold on to their assets or capitalize on gains amid current market fluctuations. With positive sentiment prevailing across major cryptocurrencies, the impact of recent market turmoil and misinformation serves as a reminder of the need for careful and informed decision-making in the ever-changing crypto landscape. Investors now face the challenge of managing uncertainties while assessing the broader implications for the cryptocurrency market.
reference: watcher.guru