According to analyst firm Glassnode, almost 95% of the crypto market is currently “profitable”. After Bitcoin (BTC) surged above $ 55,000 this week, the number of profitable Bitcoin wallets has increased by 16%.
The indicator, created by Glassnode studio, is designed to display the percentage of addresses on the network whose investments are profitable. To determine the status, the indicator analyzes the purchase price, which is calculated at the moment the coins are moved to the bitcoin wallet, and then compares it with the actual bitcoin price.
There are many ways to determine if a market is overbought or oversold. Some cryptocurrency traders track technical indicators such as the Relative Strength Index, some analyze blockchain statistics.
Earlier marginal profits were recorded in May 2021, shortly before the massive sale. Then bitcoin and the entire crypto market lost about 50% of their value.
Overall, the number of lucrative bitcoin addresses on the network began to grow after a huge leap in late 2020. Today, October 8, Bitcoin is trading at $ 55,300, gaining 1.42% per day.