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.