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Following Bitcoin’s (BTC) rally above the $56,000 price range, a huge number of addresses holding the asset have been pushed into a profitable zone.
According to a tweet from market intelligence platform IntoTheBlock, around 95% of Bitcoin addresses are currently in profit, with 0% in loss.
95% of Bitcoin addresses are now in profit!
The last time we saw this level of profitable addresses was during the peak of the 2021 bull market, with prices over $60k pic.twitter.com/MBq95tTKAA— IntoTheBlock (@intotheblock) February 27, 2024
95% of Bitcoin Addresses in The Money
After hovering around the sidelines for about a week, BTC reached $57,000 – a price level that was an all-time high in February 2021 and was last seen in November of the same year during the bull run. Monday was deemed an intense day for the crypto industry as the digital asset witnessed a 10% surge, liquidating millions of dollars in the process.
Bitcoin first surged past $53,000 and then recorded another four-digit flight within a few minutes, smashing $55,000 and $56,000 in its path. At the time of writing, the cryptocurrency changed hands at around $57,000, per data from CoinMarketCap.
The digital asset’s remarkable ascent increased the number of Bitcoin addresses in the money, bringing the percentage of profitable wallets to a level last seen during the peak of the 2021 bull market, when BTC was worth over $60,000.
The last time Bitcoin addresses reached a similar level of profit recently was in early January when BTC rose past the $46,000 mark. At the time, only 90% of the wallets were in profit, indicating a recurring pattern in Bitcoin’s bull cycles.
Why Is Bitcoin Rallying?
It has been established that the bear season is far behind us, and BTC, alongside the crypto market, has begun its bull run. Several factors are to be considered as catalysts for this rally, including the steady BTC demand from the spot Bitcoin exchange-traded fund (ETF) market, which has amassed a cumulative trading volume of more than $50 billion since its launch in early January.
CryptoPotato reported that analysts are speculating about the possibility of BTC breaking its all-time high of $69,000 before the upcoming halving scheduled for April.
The halving is another event that has significantly impacted BTC’s price. Anticipation for the incident, which is expected to unveil the next stage of BTC’s bull run, is exerting an upward pressure on the asset’s price, pushing it to new highs.
This article first appeared at CryptoPotato
