Since November 2021, when the cryptocurrency hit its all-time high of about $69,000, over 97% of Bitcoin addresses have turned a profit thanks to the current spike in value. The majority of Bitcoin holders are currently “in the money,” according to analytics firm IntoTheBlock’s analysis of blockchain data. This suggests that their average acquisition cost for BTC is less than the current market rate of about $65,000.

Addresses that are deemed to be “in the money” are those where the current market rate of Bitcoin exceeds the average acquisition cost linked to that particular address. More than 97% of addresses fit this description, indicating that the great majority of Bitcoin owners purchased their coins for less than their current market value. This abrupt change in market dynamics will have a big impact on cryptocurrency.

Positive Significance

IntoTheBlock’s data has positive significance for the Bitcoin market. The selling pressure from users trying to break even lessens as the vast majority of addresses are now profitable. Users who enter the market to buy coins are essentially buying from existing users who are already making money, according to IntoTheBlock’s newsletter from Friday. This change in the dynamics may help to maintain the bullish momentum that is now in place.

Market dynamics and the Performance of Bitcoin

Strong inflows into U.S.-based spot exchange-traded funds (ETFs) launched in January are credited with contributing to Bitcoin’s remarkable recent performance, which has seen a 54% increase this year and a 154% gain in 2022. Wall Street’s acceptance of these ETFs has changed the dynamics of supply and demand in the bulls’ favor, fostering an environment that may lead to a possible rally that pushes Bitcoin toward all-time highs. The CoinDesk 20 Index, which measures the size of the crypto sector overall, has increased by a noteworthy 37.8% this year.

 The fact that Bitcoin addresses are currently “in the money” bodes well for the cryptocurrency market. The possibility of selling pressure from those aiming to break even is lessened because most holdings are still experiencing unrealized profits. This could contribute to Bitcoin’s persistent upward trajectory and possibly open the door for new all-time highs in the near future, along with the interest from institutional investors and favorable market dynamics.