88% of all Bitcoin holders in profit as 2023 comes to an end

Bitcoin (BTC) is trading above $42,000 on December 5, accumulating more than 2% gains in the last 24 hours. This surge, partly fueled by anticipation of a potential spot Bitcoin ETF approval and the upcoming Bitcoin halving in 2024, is rewarding investors

The leading cryptocurrency surge in 2023 rewards Bitcoin holders with an increased number of investors now ‘In The Money.’ Notably, Finbold retrieved data from IntoTheBlock, which shows that 88% of all Bitcoin holders are in unrealized profits. The ‘In The Money’ status is reached by crypto wallet addresses that received BTC at lower prices than the current mark.

On the other hand, 1% of all Bitcoin holders acquired their coins at these prices, while 11% have unrealized losses. The data highlights a positive sentiment in the Bitcoin market, with a substantial majority of investors benefiting from the cryptocurrency’s price movement

Interestingly, 69% of these investors are long-term Bitcoin holders, keeping these coins for longer than one year, while 31% are holding for less than 12 months, out of which 7% hold for less than a month.

It is also notable that only 11% of all BTC in circulation is kept by what the platform identifies as ‘Large Holders.’ Under IntoTheBlock’s definition, these are Bitcoin holders with more than 0.1% of the circulating supply.

Bitcoin holders and a bearish outlook

Despite the recent bullish price action, IntoTheBlock summarizes Bitcoin signals as ‘Mostly Bearish.’ On that, four of its indicators are neutral, while two are bearish, and a single one is bullish.

In particular, ‘Net Network Growth’ and ‘Large Transactions’ are setting a bearish outlook with 0.27% and -1.06%, respectively. The former measures the number of non-zero addresses, while the latter is the number of transactions larger than $100,000.

In this context, having a growing number of Bitcoin holders in profit could also be a potential trend reversal signal. Essentially, the larger the amount of investors ‘In The Money,’ the more likely these holders are to sell their positions and realize profits.

In October, Finbold reported 82% of Bitcoin holders in profit, while this number grew to 85% in November. Nevertheless, this also works as evidence of Bitcoin’s ability to function as a store of value.

All things considered, Bitcoin’s further performance will depend on multiple factors rather than just on what was mentioned above. Protocol development, network decentralization, adoption, and macro conditions will play a relevant role moving forward.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.