Bitrabo Editorial
Recent on-chain data sheds light on the percentage of Bitcoin users who are currently in profit after the recent price crash.
Status of Bitcoin Addresses Holding Net Gains
According to a recent report on X, the market intelligence platform IntoTheBlock discusses the profit-loss status of Bitcoin investors in light of the recent market downturn.
An important metric used is the “Historical In/Out of the Money,” which analyzes on-chain data to determine the percentage of addresses on the network holding profits and losses.
This metric evaluates the transaction history of each address to determine the average purchase price. If the cost basis is lower than the current price, the address is considered to be in profit, while the opposite indicates losses.
Addresses with a cost basis equal to the current price are breaking even. IntoTheBlock classifies the former as “in the money” and the latter as “out of the money.”
The chart below illustrates the trend in the Historical In/Out of the Money metric over the year:
The graph shows that a significant number of Bitcoin addresses have been in profit this year due to the price rally. However, the recent dip to $50,000 has caused a notable portion of investors to face losses.
Currently, approximately 75% of users are in profit, equating to 39 million addresses. A similar level of profitability was last seen in January when the price dropped to around $39,000.
Throughout history, Bitcoin has tended to reach bottoms when investor profitability is low, as those in profit are more likely to sell. Conversely, high profitability can lead to a mass selloff. This pattern has influenced Bitcoin’s market dynamics.
While 75% profitability is relatively high, during bullish periods, it has often signaled market bottoms due to increased demand. The future trajectory of Bitcoin’s profitability remains uncertain.
Current BTC Price
As of now, Bitcoin is trading around $50,100, marking a decline of over 28% in the past week.