Bitcoin addresses in profit hit 100% pre-halving but fell to 80% by August

Onchain Highlights

DEFINITION:The proportion of distinctive addresses whose funds have a mean purchase value that’s decrease than the present value. “Purchase value” is right here outlined as the worth on the time cash have been transferred into an tackle.

Bitcoin’s % of addresses in revenue skilled notable fluctuations all through 2024. Early within the 12 months, the metric hovered round 92%, coinciding with Bitcoin’s value close to $50,000.

Within the lead-up to the April 2024 halving, each the worth and revenue percentages noticed elevated volatility. The metric peaked at 100% in March when Bitcoin costs surged previous $70,000, marking a big excessive level for the 12 months.

Nevertheless, the following months launched downward strain, with the proportion of addresses in revenue dropping to round 80% by August as Bitcoin’s value retraced beneath the $55,000 stage. This development mirrors earlier cycles, akin to the numerous fluctuations noticed between 2018 and 2023, when related patterns of sharp climbs adopted by steep declines have been evident.

BTC: Percent of addresses in Profit: (Source: Glassnode) — BTC: % of addresses in Revenue: (Supply: Glassnode)

These shifts spotlight the cyclical nature of Bitcoin’s market conduct, influenced by main occasions like halvings and market sentiment shifts, resulting in appreciable impacts on the profitability of Bitcoin holders over time.

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