IntoTheBlock: 97% of Bitcoin addresses are in the profit zone

Over 97% of bitcoin addresses are profitable, IntoTheBlock analysts said in a March 2 report. Thus, the value of assets on the vast majority of wallets has increased since their purchase. Previously, such a high figure was recorded only in November 2021, when the bitcoin exchange rate set a historical maximum at $ 69,000.

During the week, transaction fees on the Bitcoin network increased by 20.86% and amounted to $ 13.6 million, reflecting an increase in the price of the asset, since transaction fees tend to grow in tandem with the market value. During the same period, $797 million worth of coins were withdrawn from centralized crypto exchanges (CEX).

There are 13.6 million BTC in the possession of long-term investors. Users who have been storing assets for more than a year fall into this category. On February 19, the average holding time of an asset before sale exceeded 365 days, which became a two-year high.

Experts also reported that about 900 bitcoins are mined around the world every day. The next halving, which will reduce the amount of remuneration to miners for a mined block from 6.25 to 3.125 coins, is expected in April this year. It will reduce the number of coins in circulation and reduce the inflation rate. As BTC becomes more scarce and demand grows, its price will also rise, the analysts concluded.

Earlier, the head of Galaxy Digital, Mike Novogratz, predicted a correction of bitcoin to $ 55,000 before reaching a new historical maximum. In his opinion, the outflow of capital will occur due to the inability of traders to maintain positions with a large amount of borrowed funds. And Matrixport allowed the correction of the crypto market by 15% by the end of April.

Source: https://getblock.net/news/intotheblock-97-of-bitcoin-addresses-are-in-the-profit-zone