Bitcoin Holders Profitability Breaks 2021 Record as $646 Billion in BTC Now “In The Money”

Data shows Bitcoin profitability has surged past the highest level recorded in 2021, with the overwhelming majority of holders in profit.

In a recent tweet, IntoTheBlock, a prominent crypto market intelligence platform, shared compelling insights into the current state of Bitcoin profitability among holders. 

According to its data, over 80% of Bitcoin addresses now hold BTC at a profit. IntoTheBlock specifically noted that this recent observation marked the highest level in two years. Interestingly, this was a period when Bitcoin’s price soared above $50,000, compared to now, where BTC trades at around $38,000.

BTC Profitability Reaches Highest Since December 2021!
Over 80% of Bitcoin addresses are currently holding at a profit. This is the highest value since December 2021, when prices were above $50k per Bitcoin
?https://t.co/qWhryCeM0D pic.twitter.com/Dod0PuuWbF

— IntoTheBlock (@intotheblock) December 1, 2023

Bitcoin Soaring Profitability

The chart accompanying the tweet highlights the trend. It suggests a correlation between the profitability of Bitcoin wallets and the corresponding increases and decreases in Bitcoin prices since 2019. 

Between November 29 and December 5, 2021, approximately 79.79% of Bitcoin holders were in a profitable position. At this period, Bitcoin exchanged hands at $53,388. 

Currently, with Bitcoin priced at $37,302, the number of profitable BTC addresses has surged even higher. Per IntoTheBlock’s chart, 81.35% of BTC holders are profitable, as observed from November 20.

Bokiko, the founder of the mining platform Cloudiko, argued that the surge in the percentage of Bitcoin wallets with positive gain “is due to the average purchase price of BTC being substantially lower following the bear market.”

Also, the chart indicated that the lowest profitability level was observed in 2020, when Bitcoin traded much lower, around $8k.

$646 Billion BTC Now “In The Money”

IntoTheBlock data shows that 16.68 million BTC worth $646 billion, held by various addresses, are “In The Money.” This metric accounts for traders whose average purchase prices are lower than BTC’s current market value. 

Also, 2.11 million BTC in various wallets valued over $88 billion are “Out of money” or are currently incurring losses. This category accounts for people who entered the Bitcoin market between $42,582 and its peak points of $67,413.

Meanwhile, only 3.96% of Bitcoin wallets are neither incurring significant losses nor enjoying profit.