When more Bitcoin addresses get into profit, there is some reason for concern. A higher profit usually means investors will begin to diversify their portfolio or cash out in the worst case. So far, that doesn’t appear to impact the long-term dormant BTC supply too much, which is a good sign.
Bitcoin Addresses In Profit Increase
It is always good to see more Bitcoin addresses be in profit at any given time. As the world’s leading cryptocurrency keeps rising in value, fewer people will be at a loss, paving the way for future investments. However, volatile assets, such as cryptocurrencies, can be rather tricky to navigate for newcomers. Even Bitcoin had a rollercoaster ride this year, as it dipped well below $30,000 not that long ago.
Things look very different today, with Bitcoin trading near $55,000 again. Those who managed to buy the dip will be happy with their profit to date. For those who purchased at the peak of $61,000, the momentum brings them closer to breaking even. Overall, the current market momentum is positive, although a near-term correction isn’t entirely out of the question just yet.
As of today, 34.521.708.78 addresses are in profit on their Bitcoin balance. That is an impressive milestone, although the number has been higher in the past. However, this metric has also seen a low of under 27 million addresses in profit in late July of this year. Bitcoin is a very resilient cryptocurrency and investment, yet it remains essential to adjust one’s time frame and expectations.
Moreover, the addresses in profit just surpassed 30 million a week or two ago. The recent 22% gain in value benefits many millions of addresses. That doesn’t mean there are over 24.5 million unique Bitcoin holders in profit, though. Users and service providers can generate many addresses and store their BC accordingly. One address does not always represent one user.
Long-term Dormant Supply Isn’t Budging
What is remarkable is how the current Bitcoin price momentum doesn’t entice long-term holders to begin cashing out. Everyone knows BTC is capable of reaching much higher values over the coming years. There is no point in selling at $55,000 or lower when $61,000 has been reached earlier this year. Instead, it is good to keep that dormant supply in the same wallet and addresses and not touch it for a while.
Numerous Bitcoin enthusiasts appear to resonate with that sentiment. The supply last active 5y-7y reached a four-month high at just under 670,000 BTC. It confirms that those who hold BTC as a long-term investment are looking for a much higher price point. What that price point may be is difficult to predict. Seeing Bitcoin hit a six-digital value is not out of the question, though, as anything can happen in this industry.