The recent surge in Bitcoin’s price has resulted in a rapid increase in the number of coins that have turned profitable. With the cryptocurrency rallying over $25k, approximately 2.7 million Bitcoin addresses have moved into profit, thereby indicating a significant uptick in investor sentiment. This unprecedented surge in BTC’s price demonstrates the growing popularity of cryptocurrencies as an alternative investment opportunity, fueling a flurry of activity among traders and investors alike. As the market continues to evolve, it remains to be seen whether this year’s Bitcoin boom will continue, or if the bubble will eventually burst.
According to on-chain data, following Bitcoin’s rise above the $25,000 level, around 2.7 million more coins have entered a state of profit. Glassnode, an on-chain analytics firm, reported that 65% of the adjusted Bitcoin supply is now in the green, with an additional 20% of the adjusted supply enjoying profits. The “percent supply in profit” indicator measures the percentage of the total circulating Bitcoin supply currently holding unrealized gains. However, there is an issue with this metric as a large amount of dormant supply has been lost because the wallets that store said coins are no longer accessible. Therefore, Glassnode has modified the indicator with the “adjusted percent supply in profit,” which filters out the data of all coins older than seven years. As a result, investors acquired 20% of the adjusted supply at prices in the $20,000 to $26,000 range. At the time of writing, Bitcoin’s price is trading around $25,100, up 13% in the past week.