Emily Walker
Bitcoin has recently experienced a remarkable surge, reaching a new all-time high, leading to significant profits for both retail and institutional investors. This surge reinforces BTC’s status as the top digital currency in the crypto market.
Rising Bitcoin Prices Bring Profits to Holders
As interest in Bitcoin grows, data from the investment platform Alphractal indicates that nearly 99.9% of Bitcoin addresses are currently profitable. This significant achievement highlights the recent uptrend in BTC, as all wallets are now yielding gains, reflecting strong investor confidence and accumulation that may further propel its price upward.
According to Alphractal’s analysis of Bitcoin’s profitability metrics, historical data shows that when overall BTC addresses have been profitable, this phase typically lasted only two days.
Additionally, Alphractal observed that during the 2017 and 2020/2021 cycles, the percentage of profitable addresses hovered between 80% and 100%. However, it failed to sustain a 100% level at the peak in late 2021.
It is essential to consider that the surge in profitability across all addresses might lead to a bearish trend for Bitcoin. Past patterns indicate that during similar periods, the market often experiences short corrections, suggesting a potential pullback in BTC’s renewed strength. The platform noted, “With Bitcoin reaching an all-time high, minor corrections are anticipated.”
Nevertheless, if the percentage of profitable addresses declines while Bitcoin’s price continues to rise, it could indicate that investors are assuming higher-priced positions, which aligns with previous local peaks in past cycles.
Bitcoin’s Profitability Index Approaches Previous Highs
Bitcoin’s recent price increase has also resulted in a boost to its average profitability index, nearing levels seen in prior cycles, which indicates stronger gains for traders and investors.
Macro researcher and on-chain analyst Axel Adler Jr. highlighted this positive trend in a recent post on X (formerly Twitter). An increase in this index usually supports BTC’s future price trajectory, attracting both veteran and new investors.
Recent findings show that this key index has surged by over 221%, with former highs of 272%, and historical peaks of 460% and 395%. Currently, the average profitability for users stands at 121% above their original investments.
As of the latest data, BTC is trading at $76,090, reflecting a daily increase of approximately 1.50%. Additionally, over the larger time frames of a week and a month, the cryptocurrency has seen rises of over 8% and 22%, respectively, indicating potential for further growth.