82% of Bitcoin holders are ‘in the money’

Bitcoin (BTC) is trading at $34,795 by press time, in a strong momentum for the leading cryptocurrency, with more than 25% gains in a week.

With this move, 82% of all crypto wallet addresses holding Bitcoin are “In the Money”, according to data retrieved by Finbold from IntoTheBlock, on October 25. On the other hand, 11% of all Bitcoin holders are carrying unrealized losses, while 7% are in a breakeven position.

Notably, only 11% of all the holders are made of what IntoTheBlock classifies as “Investors” and “Whales” for addresses holding more than 0.1% and 1% of Bitcoin’s circulating supply, respectively.

Moreover, 70% are long-term holders, having acquired their coins more than one year ago, 24% are holding between 1 to 12 months, and 6% are short-term holders that just recently bought their current balances.
It is important to understand that with a large percentage of holders “In the Money” or at a breakeven position, there is also a higher chance of these holders deciding to sell their holdings to realize the gains or protect against further losses if the sentiment turns bearish.

Signals reveal a bullish trend for Bitcoin holders

However, trend signals from IntoTheBlock reveal the bullish momentum for Bitcoin could continue for a while.

The consolidated signal shows a “Mostly Bullish” trend, with 3 out of 7 signals pointing towards continuation. While 2 points toward a neutral sentiment, and 2 suggests a bearish pivot.

Interestingly, one of the bullish signals is the sudden increase for “In The Money” holders, plus an imbalance towards “buy orders” on exchanges and also a surge in derivatives. At the time of publication, Open Interest volume for Bitcoin has surpassed August levels, validating the current trend.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.