January 2, 6:41 am
Bitcoin has had a fantastic year. Despite challenging economic conditions, the price of the world's most expensive cryptocurrency surged by almost 160% year-over-year, surprising many investors who claimed the crypto market was dead. Moreover, Bitcoin's price rally has pushed the number of addresses in profit high above the levels seen last year.
According to data presented by AltIndex.com, almost 90% of Bitcoin addresses were in profit last week, or 40% more than a year ago.
Once viewed as a speculative novelty, Bitcoin has become a popular component of diversified portfolios. Last year, it drew a lot of attention from mainstream investors, helping it more than double its value and regain all losses from 2022.
BTC began 2023 just above $16,000 but continued rising as the year progressed. It hit a 12-month high of $45,000 at the beginning of December. Although its price slipped to around $43,000 by the end of the month, this still represents a massive 160% increase year-over-year. The share of BTC addresses in profit also significantly increased in this period.
According to data from crypto analytics platform Glassnode, in December 2022, around 55% of BTC addresses were in profit. Bitcoin's price stood at $19,700 at that time. After rising to over 72% in February, the share of Bitcoin investors dropped to 64% the following month. This up-and-down movement continued until September, when 65.5% of BTC addresses were profitable. But as Bitcoin's price started rising in the last quarter of the year, so did the share of addresses in profit.
After rising to 71.5% in October, the share of addresses with positive returns jumped to over 80% in November. By the end of December, 87.5% of Bitcoin addresses were in profit, the share last seen at the peak of the crypto market in November 2021.
Besides a massive 40% increase in profitable addresses, the BTC network has also seen a growing number of investors searching for a bigger investment chunk. In December 2022, there were 820,000 unique addresses with at least 1 BTC in their balance. Since then, this number has grown by 20% and hit over one million.
According to Glassnode, the number of unique addresses with at least 1 BTC in their balance has jumped by 100,000 year-over-year, reaching 1.02 million last week. On the other hand, the number of investors with more than 10 BTC in their wallets only slightly increased in this period, rising from 154,300 to 155,700.
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The information provided by AltIndex is solely for informational purposes and not a substitute for professional financial advice. Investing in financial markets carries inherent risks, and past performance doesn't guarantee future results. It's crucial to do your research, consult with financial experts, and align your financial objectives and risk tolerance before investing. AltIndex creators and operators are not liable for any financial losses incurred from using this information. Users should exercise caution, seek professional advice, and be prepared for the risks involved in trading and investing in financial assets, only investing what they can afford to lose. The information in this application, derived from publicly available data, is believed to be reliable but may not always be accurate or current. Users should verify information independently and not solely rely on this application for financial decisions. By using AltIndex, you acknowledge that it doesn't offer financial advice and agree to consult a qualified financial advisor before making investment decisions.
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