Posted:
- Bitcoin addresses start to get profitable as chances of sell offs rise.
- Transaction fees continue to soar high.
As Bitcoin’s [BTC] price has surged, so has the profitability of its holders over the last few months.
Profits and losses
According to recent data, 80% of Bitcoin addresses are currently in profit. This surge in profitable Bitcoin addresses could potentially serve as an incentive for holders to consider selling their holdings.
As the majority of addresses witness profits, some may be prompted to capitalize on these gains by selling their Bitcoin assets. The profitability factor might influence market dynamics and trading decisions among Bitcoin holders.
80% of Bitcoin addresses currently in profit pic.twitter.com/eSq27skMZL
— Will (@WClementeIII) November 13, 2023
Bitcoin’s price recently dropped from $38,000 to $36,600, both short term and long-term holder behavior was responsible for this.
LTH vs STH
Short-Term Holders (STH), those who invest for a brief period, have been selling their bitcoins to make a profit. However, their profit trend is going down, and they’re sending fewer bitcoins to exchanges.
This means short-term holders are still making money, but not as much.
Recent data shows Short-Term Holder Profit and Loss (STH PNL) dropping below its 7-day Simple Moving Average of 30,000 Bitcoins per day.
Now, looking at Long-Term Holders (LTH), they’re holding onto their bitcoins more. The total profit from Bitcoins sent to exchanges by LTH is positive, showing gains on specific days. The average daily profit stays around +2500 BTC, indicating less activity.
Considering the market implications, Bitcoin’s value drop comes from both short-term and long-term holders selling for profit. Short-term holders contribute to the drop by selling to make profits.
Long-term holders, despite market changes, are gaining substantial profits through strategic sales, with only a few cashing in on 9th November.
Source: CryptoQuant
This dynamic creates a balance in the market, with some selling quickly for gains and others taking a patient approach. It shows the diverse strategies of Bitcoin holders in responding to market changes, influencing the overall stability and movement of Bitcoin’s value.
Is your portfolio green? Check out the BTC Profit Calculator
According to recent data, transaction fees on Bitcoin have reached new heights. This surge in miner fees would be helpful for miners to stay in profit.
If miners begin to lose out on fees and in revenue, they are forced to sell their holdings. This creates massive selling pressure on BTC causing the price to decline.
Transaction fees on the Bitcoin Network are now at their highest level since the ordinals frenzy back in May pic.twitter.com/aUqU4LL8G7
— Will (@WClementeIII) November 13, 2023