74% Of Bitcoin Holders Remain In Profit At Current Prices

2021-12-24 20:00

Bitcoin price has dropped quite a bit from its $69,000 all-time high but it continues to maintain high values. Investors who have been in the market for a while are deep in profit, while a small minority are the only ones in loss. Nevertheless, it goes to show how much the digital asset has grown in value given that the large majority of investors could sell now and still make a profit.

74% Of Bitcoin Holders Remain In Profit

Data from IntoTheBlock shows that a total of 74% of all bitcoin holders continue to remain in profit. These investors would make a profit and some already have been realizing this profit with the sell-offs that have been taking place in the market. So despite declining prices for the past month, the majority of bitcoin investors are realizing gains from their investments.

Related Reading | Despite Crackdown, Bitcoin Mining Is Still Alive And Well In China

On the flip side of this, a total of 18% of investors are in loss from their investments. Going with current prices, these investors would have purchased their bitcoins at about $52,000 and higher, putting them right in loss territory. The rest of the investors, 7% in total, remain in neutral territory. These are the investors who bought their bitcoins on or around the current trending price of the digital asset.

74% of BTC investors are in profit | Source: IntoTheBlock

Of all of thee investors, 56% have held their bitcoins for longer than a year, putting the majority of those who have held their bitcoins for longer right in profit territory. A total of 33% have held their assets for a duration of 1 to 12 months, while 11% have held their coins for less than a year.

It’s safe to say that most of those in loss are those in this last category as they would have bought their bitcoins at the height of the bull rally that sent the digital asset to new all-time highs.

Exchange Outflows Signaling Supply Squeeze

Even as the majority of bitcoin holders are in profit, exchange inflows continue to underperform outflows. On a seven-day moving average scale, total outflows from exchanges have been higher than inflows by almost $1 billion.

Related Reading | December Turns Red For Bitcoin As Market-Wide Sell-Offs Continue

The total bitcoin exchange inflows for the last seven days came out to $7.54 billion, while outflows for the same time period were higher at $8.27 billion. This signals an impending supply squeeze as the coins moving out of exchanges are higher than those coming in.

Additionally, this points to bullish sentiment among investors. With more coins moving out of exchanges, investors are most likely consolidating their holdings and moving them to safer self-storage options to hold out for the long-term.

BTC breaks above $50,000 | Source: BTCUSD on TradingView.com Featured image from Bitcoin Profit, charts from IntoTheBlock and TradingView.com

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