Journalist
Posted:
- Bitcoin addresses are starting to become profitable as the likelihood of a sell-off increases.
- Transaction costs continue to soar.
If Bitcoins [BTC] its price has skyrocketed, as has the profitability of its holders in recent months.
Wins and losses
According to recent data, 80% of Bitcoin addresses are currently profitable. This increase in the number of profitable Bitcoin addresses could potentially serve as an incentive for holders to consider selling their holdings.
Since the majority of addresses are witnessing profits, some may be prompted to take advantage of these profits by selling their Bitcoin assets. The profitability factor can influence market dynamics and trading decisions among Bitcoin holders.
80% of Bitcoin addresses are currently making a profit pic.twitter.com/eSq27skMZL
— Will (@WClementeIII) November 13, 2023
The price of Bitcoin recently fell from $38,000 to $36,600, both in the short and long term, the behavior of its holders was responsible for this.
LTH vs STH
Short-Term Holders (STH), those who invest for a short period of time, have sold their bitcoins to make a profit. However, their profit trend is declining and they are sending fewer bitcoins to exchanges.
This means that short-term holders still make money, but not as much.
Recent data shows that the Short-Term Holder Profit and Loss (STH PNL) is falling below the 7-day Simple Moving Average of 30,000 Bitcoins per day.
Now if we look at Long-Term Holders (LTH), they are holding onto their bitcoins more. The total profit from Bitcoins sent to exchanges by LTH is positive and shows profit on specific days. The average daily profit remains around +2500 BTC, indicating less activity.
Considering the market implications, Bitcoin’s decline in value is the result of both short-term and long-term holders selling at a profit. Short-term holders contribute to the decline by selling to make a profit.
Long-term holders, despite market changes, are making significant profits through strategic sales, only a few of which cash in on November 9.
Source: CryptoQuant
This dynamic creates a balance in the market, with some selling quickly for a profit while others take a patient approach. It shows the various strategies of Bitcoin holders in responding to market changes, which affect the overall stability and movement of Bitcoin’s value.
Is your portfolio green? Check out the BTC profit calculator
According to recent data, Bitcoin transaction fees have reached new heights. This increase in miner compensation would help miners continue to make profits.
When miners start losing income and compensation, they are forced to sell their assets. This creates enormous selling pressure on BTC, causing the price to drop.
Transaction fees on the Bitcoin network are now at their highest level since the Ordinals frenzy in May pic.twitter.com/aUqU4LL8G7
— Will (@WClementeIII) November 13, 2023