Amid soaring Bitcoin (BTC) prices, its on-chain addresses demonstrate incredible profitability. At the same time, the behavior of long-term BTC holders sends mixed signals to the audience.
Amid soaring Bitcoin (BTC) prices, its on-chain addresses demonstrate incredible profitability. At the same time, the behavior of long-term BTC holders sends mixed signals to the audience.
Bitcoin (BTC) has not been this profitable since November 2021
As Bitcoin (BTC) set a new local high around $64,000, more than 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 on its latest On-Chain Insights: Supply and Demand Dynamics of Bitcoin report.
The analysts added that the last time such a significant proportion of profitable addresses was recorded, the price of Bitcoin was around $69,000, approaching its all-time high.
Both Bitcoin (BTC) and Ethereum (ETH) saw a dramatic increase in fees. In the past few days, Bitcoin and Ethereum transaction fees have increased by 20.86% and 43.56%, respectively.
Additionally, 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 the CEX, which can also be interpreted as a bullish sign for bulls.
As previously reported by Guru-InvestingBitcoin (BTC) closed February 2024 with an unparalleled green candle that printed a price surge of $22,000.
The recent growth should be attributed to the growing popularity of the newly authorized Bitcoin spot ETFs in the US.
HODLers ready for BTC correction?
At the same time, Bitcoin (BTC) “HODLers,” that is, long-term investors who have not moved their assets for at least a year, are demonstrating cautious behavior.
A total of 13.6 million BTC (or more than 69% of its available supply) are in the possession of this influential group of investors. At the same time, the metric recorded a high in January-February 2024.
As a result, some long-term investors could be taking profits in anticipation of an impending correction.
Top Bitcoin (BTC) analysts and investors have already issued correction alerts hinting at a possible 20-25% drop in the coming weeks.
