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| Last updated: December 5, 2023
- 80% of BTC addresses are now held at a profit.
- The 180-day MVRV remains positive at around 24%.
Recent data on Bitcoin [BTC] indicates that it has reached its highest level of profitability in almost two years.
Bitcoin shows 2021 pre-bull run trend
InTheBlok revealed that approximately 80% of Bitcoin portfolios currently hold the asset at a profit. This marks the highest level of profitability since December 2021.
The increase in profitability can be partially attributed to the spot price at which the majority of these wallets initiated their trades.
The current profitability level puts BTC in a position similar to that of 2020-2021 before the bull run.
Furthermore, there has been a notable increase in institutional accumulation, as evidenced by an increase in the number of wallets holding 1,000 BTC or more.
Comparison of the Bitcoin YTD price trend
A study of the daily price development of Bitcoin showed a remarkable difference between the spot price at the beginning of the year and now.
Initially, BTC started the year within the $16,000 price range and then experienced a consistent increase leading to the $22,000 price range.
Additionally, there was a subsequent increase to the $26,000 price range. These levels represent the entry points for a significant portion of the associated addresses, which explains the current level of profitability.
Source: TradingView
As of the last update, Bitcoin was trading for over $38,000, marking an increase in value of almost 3% in the past 48 hours. This current price represented a doubling of the value compared to the beginning of the year.
Moreover, the chart showed a continuous upward trend for more than two months, as confirmed by the Relative Strength Index (RSI) analysis. The RSI, currently around 65, showed a strong bull run and approached the overbought zone.
Analysis of BTC’s long-term MVRV
Analysis of the Bitcoin 180-day market value to realized value ratio (MVRV) on Santiment confirmed IntotheBlock’s profitability data.
The MVRV chart shows that holders have consistently remained in a profitable position, with only occasional trends dipping below zero. Since about October 20, the MVRV has consistently maintained levels above zero.
Source: Santiment
Read Bitcoin (BTC) price prediction 2023-24
As of the last update, the MVRV was approximately 24%. This indicated that BTC holders would realize a profit of more than 20% if they chose to sell at the current market price.
The trend suggests that more addresses could become profitable once a full bull run occurs.