u.today
Amid rocketing Bitcoin (BTC) prices, its on-chain addresses demonstrate unbelievable profitability. At the same time, the behavior of long-term BTC holders sends mixed signals to the audience.
Bitcoin (BTC) has not been so profitable since November 2021
As Bitcoin (BTC) set a new local high at about $64,000, over 97% of its on-chain addresses are currently profitable. This is the highest level of profitability since November 2021, says leading blockchain data provider IntoTheBlock in its latest On-Chain Insights: Bitcoin Dynamics Supply vs Demand report.
Over 97% of Bitcoin addresses reached profitability this week! This week's newsletter explores Bitcoin’s positioning in the market cycle and explores how investors have responded. Read more here👇https://t.co/cISiFWRY8r
— IntoTheBlock (@intotheblock) March 2, 2024
Analysts added that the last time such a significant proportion of profitable addresses was registered, the price of Bitcoin was around $69,000, nearing its all-time high.
Both Bitcoin (BTC) and Ethereum (ETH) witnessed a dramatic increase in commissions. In the last days, transaction fees for Bitcoin and Ethereum have risen by 20.86% and 43.56%, respectively.
Also, both Bitcoin (BTC) and Ethereum (ETH) owners are aggressively withdrawing their assets from centralized exchanges. In the last week, over $1.7 billion worth of BTC and ETH left CEXes, which can also be interpreted as an optimistic signal for bulls.
As covered by U.Today previously, Bitcoin (BTC) closed February 2024 with an unparalleled green candle printing a $22,000 price increase.
The recent growth should be attributed to the growing popularity of Bitcoin spot ETFs recently green-lit in the U.S.
HODLers ready for BTC correction?
At the same time, Bitcoin (BTC) "HODLers," i.e., long-term investors who have not moved their assets for at least one year, demonstrate cautious behavior.
A total of 13.6 million BTC (or over 69% of its available supply) are in possession of this influential group of investors. At the same time, the metric registered a high in January-February 2024.
As a result, some long-term investors might be taking profits in the anticipation of a correction coming.
Major Bitcoin (BTC) analysts and investors have already released correction alerts hinting at a possible 20-25% drop in the coming weeks.