Overheated Market? 95% of Bitcoin Wallets Are Now in a State of Profit
2024-10-19

Bitcoin’s recent price surge to surpass the $68,000 mark has left a staggering 95% of Bitcoin addresses on chain enter a state of profit, which has led to a boom in market sentiment amid the recovery.
According to data shared by on-chain data firm IntoTheBlock, only 3% of Bitcoin addresses are currently at-the-money, meaning that they are currently breaking even at these prices, while only 2% are out of the money, or are yet to see an unrealized profit at current price levels.
With 95% of Bitcoin addresses now in profit, market sentiment is booming. Historically, such levels have signaled strong bullish momentum but can also indicate a potential overextension.
Will we see a breakout, or is it a sign that the market is overheating? pic.twitter.com/8q1i9r4tJ8
Bitcoin is at the time of writing trading at $68,600 after moving up more than 10% over the past week, amid a significant price recovery that comes after significant accumulation from new whale wallets.
These new Bitcoin whales have been accumulating aggressively to the point that they now hold 9.3% of the cryptocurrency’s total supply, or around $132 billion worth of Bitcoin. These whales now hold 1.97 million coins after their BTC balanced surged a whopping 813% year-to-date.
Each of these wallets has over 1,000 BTC and an average coin age below 155 days. These wallets include custodial wallets and those of spot Bitcoin exchange-traded funds (ETFs) that were launched in January, but exclude exchanges and miners.
Notably, the spot Bitcoin ETFs launched earlier this year after securing approval from the U.S. Securities and Exchange Commission have surpassed $20 billion in total inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) leading with $22.4 billion inflows.
These funds reached that mark after seeing more than $1.5 billion in inflows over the past week, with IBIT being followed by Fidelity’s FBTC and ARK 21Shares’ ARKB. The only spot Bitcoin ETFs seeing outflows year-to-date are the Hashdex Bitcoin ETF (DEFI) with $1.79 million outflows, and Grayscale’s GBTC with $20.1 billion in outflows.
These funds have in total seen their assets under management top the $65 billion mark, according to Bloomberg senior ETF analyst Eric Balchunas, after seeing their inflows top $20 billion in less than a year, a figure that he says gold ETFs needed five years to reach.
Featured image via Unsplash.