Three quarters of BTC addresses still profitable despite market decline: Glassnode

Bitcoin (BTC) price has been falling again lately, but new findings from blockchain analytics firm Glassnode show that up to 75% of Bitcoin addresses are profitable.

In its Week On Chain report published Monday, April 11, Glassnode analyzed the number of Bitcoin wallets that are making profits and found that around 70% to 75% of addresses are seeing an unrealized profit, much higher than the 45% to 50% of addresses during the 2018 bear market.

Commenting on the results, Glassnode analysts added that the current bear market is nowhere near as bad as previous ones:

“The current bear market is not as severe as the worst of any previous cycle, with only 25% to 30% of the market showing an unrealized loss. It remains to be seen whether further sell-side pressure will drive the market lower and thus pull more of the market into unrealized loss like in previous cycles.”

The report further revealed that long-term holders of bitcoin held for over 155 days are the least likely to incur a loss. More than 67.5% of long-term holders have an unrealized gain, while short-term holders, those who have held less than 155 days, have made gains of just 7.88%.

Currently, the bitcoin price is below $40,000 and has fallen to almost $39,000 in the last 24 hours, which has pushed the asset back into the bear market. The direction Bitcoin will take has some speculating on a drop to $30,000 while other data shows traders trying to push the price down to $50,000.

The report also explained that 58% of the volume on the Bitcoin network is accounted for by what is known as “profit dominance,” a metric that hasn’t been closely watched since December 2021.


Glassnode added that bear markets typically see long periods of transaction volume making losses, and this reversal in profit dominance could be a sign that sentiment is changing as demand for Bitcoin is able to buy the sell side.

However, Glassnode writes, “With prices continuing to struggle, this suggests that the demand side remains somewhat lackluster and that investors are taking profits depending on what market strength can be found.”

The analysts added that the market has seen daily realized gains of around 13,300 BTC since mid-February, while daily realized losses have fallen from around 20,000 BTC in January to around 8,300 BTC over the past week.

Related: Bitcoin Price Drop To $39.2K Brings BTC Back Into “Bear Market” Territory

While a large proportion of addresses and transactions are showing a profit, according to the analysts, the number of users in the Bitcoin network as a whole, and thus the number of transactions, continues to “langer”.

Transactions on the network sit at around 225,000 daily transactions, a figure similar to the 2018-2019 bear market. Transactions have been up since mid-2021, but analysts noted that “it’s a far cry from the hype cycle seen during bull markets.” Three quarters of BTC addresses still profitable despite market decline: Glassnode

Fry Electronics Team

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