As 2023 Concludes, 88% of Bitcoin Investors Profit Amidst Market Uptrend

Bitcoin (BTC), trading above $42,000 as of December 5, has seen over 2% gains in the last 24 hours. This increase in value, driven partly by the anticipation of a spot Bitcoin ETF and the upcoming 2024 Bitcoin halving, is benefiting the cryptocurrency’s investors.

Analyzed data indicates that a whopping 88% of Bitcoin holders are currently in unrealized profit. This ‘In The Money’ status is attained when crypto wallet addresses acquire BTC at prices lower than the current market value.

Concurrently, 1% of Bitcoin holders bought their coins at these levels, while 11% are experiencing unrealized losses. This data underscores a predominantly positive market sentiment, with a majority of investors gaining from Bitcoin’s price movements.

Significantly, 69% of these investors are long-term holders, keeping their Bitcoins for more than a year. In contrast, 31% have held their coins for less than 12 months, with 7% holding for under a month.

It’s also noteworthy that merely 11% of the total circulating BTC is owned by ‘Large Holders’. These are investors holding more than 0.1% of Bitcoin’s circulating supply.

Bitcoin’s Outlook Amidst Market Optimism

Despite the bullish trend, analysis classifies Bitcoin’s market signals as ‘Mostly Bearish.’ Four indicators are neutral, two bearish, and one bullish. The ‘Net Network Growth’ and ‘Large Transactions’ indicators, showing 0.27% and -1.06% respectively, suggest a bearish outlook. The former tracks the growth of non-zero addresses, while the latter monitors transactions exceeding $100,000.

The high percentage of Bitcoin holders in profit could signal a potential market reversal, as investors may choose to sell and realize profits. This trend was evident in October when 82% of holders were in profit, rising to 85% in November, showcasing Bitcoin’s efficacy as a store of value.

However, Bitcoin’s future trajectory will be influenced by various factors, including protocol development, network decentralization, adoption rates, and macroeconomic conditions.