Over 97% Bitcoin Addresses In Profit: Correction Coming?

Bitcoin’s value recently reached a point of profitability not seen since November 2021. More than 97% of bitcoin addresses are in profit. This happened as the price of bitcoin reached a new local peak of around $64,000. According to a report from IntoTheBlock, this is the highest point profitability for bitcoin wallets since the price of bitcoin came close to its all-time high of around $69,000.

Bitcoin ended February with impressive gains

February closed with an impressive $22,000 price increase for bitcoin, which was the second largest monthly increase ever for bitcoin. This increase is partly due to the growing popularity of bitcoin spot ETFs in the US, which were approved in January.

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Is Bitcoin Still Bullish?

In addition to bitcoin’s price increase, both bitcoin and ethereum (eth) have seen a sharp increase in transaction fees. The costs for transacting with Bitcoin have increased by 20.86%, and for Ethereum by even 43.56%. This coincides with a major movement of bitcoin and ethereum away from the central exchanges. More than $1.7 billion worth of these cryptocurrencies have been removed from these exchanges in the past week. This could indicate a positive view of investors on the future.

However, bitcoin’s long-term investors are showing a more cautious stance. This group, which hasn’t moved their bitcoin in at least a year, owns more than 69% of the available supply of bitcoin. Despite current profitability, this high percentage held by long-term investors may indicate preparation for a possible market correction.

Conclusion: mixed signals in the crypto market

While bitcoin’s recent profitability and asset withdrawals from exchanges paint an optimistic picture, the cautious stance of long-term holders shows mixed sentiment in the market. Some analysts therefore expect a small correction from bitcoin soon.