Bitcoin Soars to New Highs, With Nearly All Hodlers in Profit

Bitcoin (BTC) has experienced a significant surge in price, reaching a new yearly high of $57,416. This rally has resulted in nearly all Bitcoin wallets (95%) being profitable, a level last seen during the peak of the 2021 bull market.

Market intelligence platform IntoTheBlock revealed this information, highlighting that this surge in profitability is primarily driven by long-term holders, with 69% having held their Bitcoin for over a year. Only 6% of addresses acquired Bitcoin within the last month.

$56k #BTC .

Buying Bitcoin below $69k is like buying it at $20k last bull run.

You're still early! pic.twitter.com/boH2MpTgeb

— Coinwaft (@coinwaft) February 27, 2024

Bitcoin’s momentum extends beyond just price. Futures open interest, representing outstanding contracts, has reached an all-time high of $24.78 billion, surpassing the 2021 record. This suggests increased leverage and potential for further volatility in the market.

Read Also: Bull Run: Bitcoin Approaches $38,000, and Ethereum Crosses $2,000

Furthermore, Bitcoin ETFs continue to witness record inflows, exceeding $6 billion since January 10th. This accessibility, coupled with the recent approval of the first U.S. Bitcoin ETF, has likely fueled institutional investment and broader market participation.

Analysts attribute this uptrend to several factors, including:

• Increased institutional involvement: ETFs have opened doors for a wider range of investors to participate in the Bitcoin market.
• Positive sentiment: The approval of the first U.S. Bitcoin ETF has instilled confidence in the asset class.
• Safe-haven appeal: Global economic uncertainties might be pushing investors towards Bitcoin as a potential hedge.

However, amidst the excitement, a note of caution is essential. While the current market sentiment seems bullish, the cryptocurrency market is renowned for its historical volatility. The possibility of a correction following such a rapid rise remains a concern for some analysts.

Read Also: Matrixport Predicts a Bullish Run, Aims for $125,000 by December 2024