Available data from Glassnode shows that around 75% of wallets holding Bitcoin (BTC) are in profit despite the value of the flagship asset falling a long way from its ATH to below the $40k mark recently.
Bitcoin wallets are in profit
According to the report, there are currently more wallets in profit when compared to the 2018 bear market — only 50% of the wallets were in profit then.
We can see that the current bear market is not as severe as the worst phases of all prior cycles, with just 25% to 30% of the market being at an unrealized loss.
The analysis also shows that about 60% of transaction volume is in the profit domination. This is the first time it has detected the statistic at such robust levels since December 2021. This high-profit dominance could be a sign of shifting sentiment.
It also shows that long-term investors are the most likely to make a profit in this market. In this case, long-term Bitcoin holders have held the coin for at least 155 days. Of this group, more than 67.5% have unrealized profits. But only 7.88% of short-term holders who have held for less than 155 days have seen any gains.
Despite this, demand for the asset is currently low, and “investors are profiting from any market strength that exists.” Since mid-February, the average daily profit has been around 13,300 BTC, while daily losses have reduced from 20,000 BTC in January to approximately 8,300 BTC last week.
Transaction volume has dropped to lows similar to the 2018-2019 bear market. The Bitcoin network is processing about 225,000 transactions daily, representing the low excitement levels.
Competition remains fierce among miners
Glassnode data also revealed that competition amongst Bitcoin miners has reached a new high, despite declining transaction fees.
The data analytics firm wrote that the mining difficulty for each Bitcoin block would require 122.78 Zettahashes to solve, which is the same as:
“All 7.938 Billion people on earth each guessing a SHA256 hash 15.5 Trillion times, every 10mins to solve each Bitcoin block.”
It also noted that Bitcoin mining activities have recovered from China’s ban. The current hashrate is around 20% higher than when the Asian country kicked out miners from its jurisdiction.
However, it also concluded that miners’ revenue keeps climbing. Glassnode said:
“[Miners earn] $207,000 per Exahash they apply to the network. This is also 40% more revenue than during the final capitulation event of the 2018 bear market.”
The post 75% of Bitcoin wallets are in profit despite bearish market appeared first on CryptoSlate.
