Bitcoin has become profitable for nearly 80% of individuals or organizations holding it for almost two years. Recent data related to Bitcoin (BTC) reveal the highest profitability level in nearly two years.
Pre-2021 Signs in Bitcoin
According to data provided by IntoTheBlock, approximately 80% of Bitcoin wallets are currently profitable. This indicates the highest level of profitability since December 2021. The increase in profitability can be partly attributed to the spot price at which these wallets initiated their transactions.
The current profitability level can be compared to the situation observed in 2020-2021 before the bull run in BTC price. Furthermore, there has been a significant increase in whale accumulation, as indicated by the increase in the number of wallets holding 1,000 BTC or more.
Bitcoin Trend Comparison
An examination of Bitcoin’s daily time frame price trend reveals a significant difference between its spot price at the beginning of the year and its current trading price. Bitcoin started the year at a price level of $16,000 and later experienced a price rise up to $22,000.
Furthermore, it later rose to a second level of $26,000. These levels serve as entry points for a significant portion of the mentioned addresses in the news and reflect the current profitability level.
As of the time of writing, Bitcoin appears to have surpassed $39,000. It has experienced an almost 1.5% price increase in the past 48 hours. This price signifies an increase of more than double the value compared to the beginning of the year.
Additionally, the chart below confirms the continuous upward trend for over two months, as indicated by the Relative Strength Index (RSI). The RSI, currently above 70, appears to have entered the overbought zone.
The Future of Bitcoin (BTC)
The analysis of Bitcoin’s 180-day Market Value to Realized Value (MVRV) ratio on Santiment aligns with IntoTheBlock’s profitability data.
The MVRV graph below illustrates that wallet holders have consistently remained in a profitable position with occasional downward trends below zero. Since around October 20th, the MVRV has consistently been above zero.
As of the latest update, the MVRV is situated around 24%. This implies that BTC holders would achieve a profit of over 20% if they choose to sell the cryptocurrency at the market price.
