Losses transformed into profits. The recent sharp increase in Bitcoin (BTC) price – and the crypto market in general – brought balm to the hearts of its owners. And for good reason: a very large majority of BTC addresses see the value of their crypto-assets exceeded that at the time when the crypto-assets in question arrived at the address.
8 out of 10 BTC addresses gained value on the US dollar
With the last bullish impulse of the price of bitcoin, which brought the king of cryptos between 34,000 and 34,500 dollars, more than one owner of this digital currency can now breathe. Indeed, according to data from Glassnode reported by Cointelegraph, there would now be more 80% of addresses holding bitcoins which would have gone from unrealized capital losses to unrealized capital gains (in US dollars) on the value of their bitcoins.
In any case, if we consider the price upon arrival of their BTC on their address as the purchase price. As we see in the graph below, it is necessary go back to the very beginning of 2022 (and therefore at the very beginning of thecrypto winter) to find as many Bitcoin addresses in the theoretical green.
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When the HODL on Bitcoin ends up paying again
In terms of number, there are more than 39 million of addresses of BTC wallets which find themselves in a situation of latent capital gain in US dollars. There would still be approximately 9 million in the red (always considering their arrival date on the address).
While Bitcoin is not yet only at 50% of its ATH (historic high) of November 2021 (around $69,000) this good health of digital wallets won’t surprise you so much long-time enthusiasts of the cryptosphere. In any case, not those who practice the very simple strategy of HODL. This consists of holding BTC over very long periods of time.
Indeed, all BTC which have simply been bought (and kept) before January 2021 are necessarily in the green. This, without having to do anything, since cryptocurrency invented by Satoshi Nakamoto had never reached the value of $34,000 before.
Moreover, a recent analysis on BTC wallets practicing HODL seems very consistent with the present figure of 80% of addresses in theoretical capital gains. Indeed, according to Glassnode data (again!) 76% of bitcoins are held by long-term investors (HODLers), who have put aside their precious cryptos since at least 155 days (a little over 5 months).
When it comes to crypto, don’t throw caution to the wind! So, to keep your cryptographic assets safe, the best solution is still a personal hardware wallet. At Ledger, there is something for all profiles and all cryptos. Don’t wait to put your capital in safety (commercial link)!