Bitcoin (BTC) has surged over 25% in a week and is trading at $34,795 at the time of writing. This means that most of the Bitcoin holders are making profits from their investments. According to data from IntoTheBlock, 82% of all Bitcoin addresses are “In the Money”, meaning that their current balance is worth more than what they paid for it. Only 11% of the addresses are “Out of the Money”, suffering unrealized losses, while 7% are “At the Money”, breaking even.
The data also shows that the majority of Bitcoin holders are long-term investors, with 70% holding their coins for more than a year. Only 6% are short-term traders who bought their coins in the last month.
However, having a large percentage of holders in profit also increases the risk of selling pressure if the market sentiment changes. The holders may decide to cash out their gains or cut their losses if Bitcoin’s price drops.
IntoTheBlock’s trend signals indicate that Bitcoin’s bullish momentum may continue for some time. The overall signal is “Mostly Bullish”, with three out of seven indicators pointing to a positive direction. Two indicators are neutral, and two are bearish.
One of the bullish indicators is the increase in “In the Money” holders, which shows strong demand for Bitcoin. Another bullish indicator is the imbalance between buy and sell orders on exchanges, which favors buyers. The third bullish indicator is the rise in derivatives activity, which reflects high interest and confidence in Bitcoin.