Bitcoin's (BTC) recent bullish momentum has most bitcoin-holding blockchain addresses sitting on unrealized gains on their investments.
More than 97% of BTC addresses are now "in the money," according to data tracked by analytics firm IntoTheBlock. That's the highest proportion since November 2021, when the largest cryptocurrency by market value hit a record high around $69,000.
An address is said to be in the money when BTC's going market rate is above the address' average BTC acquisition cost. In other words, most holders acquired their BTC below the cryptocurrency's current price of about $65,000.
The data has bullish implications for the market, according to IntoTheBlock.
"Given the substantial percentage of addresses in profit, the selling pressure from users attempting to break even no longer has a significant effect," IntoTheBlock said in a newsletter published Friday, when BTC traded near $62,000.
"For newcomers entering the market to purchase coins, they are essentially buying from existing users who are already realizing a profit," IntoTheBlock said.
Bitcoin has risen 54% this year, extending 2022's 154% gain, mainly due to strong inflows into the U.S.-based spot exchange-traded funds approved in January. Wall Street's embrace of the spot ETFs has skewed demand-supply dynamics in favor of the bulls, opening the doors for a rally that could propel it toward a new record high. The CoinDesk 20 Index, a gauge of the broader crypto market, has risen 37.8% this year.
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