The percentage of profitable Bitcoin addresses has seen significant fluctuations throughout 2024. At the beginning of the year, this metric hovered around 92%, coinciding with Bitcoin’s price nearing $50,000.
Leading up to the halving event in April 2024, both the price and the percentage of profitable addresses became increasingly volatile. This metric peaked at 100% in March as Bitcoin’s price soared to $72,000, marking a significant high for the year.
However, the following months saw downward price pressure, with the percentage of profitable addresses dropping to around 80% in August as Bitcoin’s price corrected below $50,000. This trend mirrors previous cycles, such as the major fluctuations observed from 2018 to 2023, where sharp increases were followed by deep declines.
These fluctuations highlight the cyclical nature of Bitcoin market behavior, influenced by major events such as halvings and shifts in market sentiment, leading to significant impacts on the profitability of Bitcoin holders over time.
The percentage represents the proportion of unique addresses with an average purchase price lower than the current price. The “purchase price” here is defined as the price at the time the coins were transferred to an address.
You can check Bitcoin’s price here.
