71% of Bitcoin addresses remain profitable despite falling currency prices

According to a Bitcoinist report on February 21, recent data from IntoTheBlock shows that if the price of Bitcoin drops to $ 9,000, there may be a loss of 1.17 million Bitcoin addresses.

Screen Shot 2020-02-21 at 9.17.13 AM (Image source: pxhere )

Many Bitcoin traders are trapped above $ 10,000

According to data collected by blockchain analysts, when Bitcoin dropped to the $ 9,600 support level last time, more Bitcoin wallet addresses were "no longer profitable".

IMAGE-2020-02-20-161434

Profitability of Bitcoin addresses

So far, more than 71% of Bitcoin addresses are still profitable, and many of them have relatively low prices for bitcoin purchases, and still have considerable profit potential. However, when the price of bitcoin approaches $ 9,000, there will be 1.17 million new addresses appearing below the breakeven point.

We cannot determine the actual number of Bitcoin wallets and the actual owners of these wallets. In addition, although some people have suggested "hoarding" more bitcoin when the price of the currency drops, there are also many people who "owe". They cannot control themselves and always sell the bitcoin in panic when the price of the bitcoin drops.

By analyzing Bitcoin's active addresses, we find that the vast majority of people tend to hold Bitcoin in their hands because the number of Bitcoin's active addresses has been declining since last year's peak. Currently, only more than 600,000 addresses are active every day.

Bitcoin's daily transaction volume is still around 330,000, which is at a normal level. Bitcoin's daily transaction volume is still high, with more than $ 1.8 billion worth of Bitcoin flowing between different addresses every day.

Although the price of the currency has fallen, the data is still encouraging, as most investors are still holding and continuing to store Bitcoin. If the price of Bitcoin can exceed $ 10,000, a large number of subsequent investors will regain profits. Of course, there are quite a few people who buy bitcoin at a price of more than 10,000 US dollars, and even some people buy it at the highest price of 19,000 US dollars, but most people who use bitcoin and "coin hoarders" buy The cost of coins is much lower.

Some early buyers may be affected by continued decline in Bitcoin price

As of this writing, the price of Bitcoin has fallen to $ 9581.07. If this downward trend continues, those who recently bought at around $ 8,000 may soon face the risk of shrinking investment profits. According to the data, we also found that there are many addresses where the price of buying coins is 4,000 US dollars. At present, Bitcoin is unlikely to fall to such a low price.

According to TokenAnalyst data, the on-chain capital flow to the exchange is still relatively stable.

Screen Shot 2020-02-21 at 9.05.26 AM

BTC's on-chain flow on February 18:

#Currency security deposits USD 89.8 USD, withdrawal USD 85.6 USD

#bitstamp Deposit $ 33.4, Withdraw $ 33.3

#bitmex 33.9 USD deposit, USD 27.7 withdrawal

#bitfinex 19.2 USD deposit, USD 19.8 USD withdrawal

# Huobi 61.7 USD into the gold, USD 64.3 out

#krahen 36.5 USD, USD 49.9 USD

#okex 55.2 USD deposit, USD 34.2 withdrawal

More information: https://t.co/u90eafzR5J

-TokenAnalyst, February 19, 2020 Bitcoin's current price fluctuations will also be severely affected by the futures market. Because the operation activities in the futures market have nothing to do with the actual on-chain activities and wallet activities. However, in the future, having physical bitcoin may be an advantage, which has also become the main reason for many people to hold the currency.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Market Analysis | Bit market strong breakthrough, mainstream currency can highlight

Market fundamentals: Today, the currency market is still quiet. In the mood of the IEO SGD, the bit disk surface sudd...

Blockchain

Economist: Ponzi scheme is the latest form of Bitcoin scam

Source: Sina Finance According to foreign media reports, according to data provided by crypto data analysis company C...

Blockchain

Analysis | After 2028, bitcoin prices will never be less than $100,000

With the increasing popularity of cryptocurrencies, their future prices have become the focus of more and more specul...

Market

The circle of friends that shocked you may affect the price of coins. They started to predict through social media.

Their goal is to create an algorithm that can find price "signals" from the vast amounts of information on ...

Blockchain

The employee remotely steals 100 bitcoins from Bitland and was sentenced to one year and three months in prison.

Since the birth of the first Bitcoin in 2009, it has attracted the attention of countless people. According to the da...

Blockchain

BTC rebound gradually stabilized, weekly level callback is nearing completion

Author | Hash Pie Analytics Team Bitcoin halving: price impact and historical correlationA shares should not be too o...