Intotheblock, a blockchain analytics firm, has revealed an on-chain data claiming that 89.28% of the Bitcoin addresses are in profit. According to the data, there are around 31.94 million Bitcoin addresses with balance and 28.5 million of these are in profit currently.
There are now 31.94 million addresses with a balance in $BTC.
Throughout 2020, the number of addresses with a balance in BTC has increased by 11.9%.
— intotheblock (@intotheblock) October 10, 2020
Intotheblock Analyst Claims Positive Factor for Medium-Term Bitcoin Price Cycle
According to an analyst at Intotheblock, the figure is showing a complete positive factor for the medium-term price cycle of Bitcoin. Due to such a huge number of addresses being in profit, it could be understood that the Bitcoin price cycle is quite optimistic. Over the past seven months, it is seen that the price of Bitcoin has increased in such a manner that most of the Bitcoin users are in profit now.
However, there is another side as well where the users might be aiming to sell their Bitcoins because they are in profit now. Most of the Bitcoin Whales wait to enter into the position where they are in profit and then they tend to sell their Bitcoins. While on the other hand, retail investors are not having any specific patterns for selling Bitcoins. But it is still believed that the retail investors must be willing to sell their Bitcoins when they are in profit.
What Will Be The Move of Retail Investors
Even though it is believed that the retail investors might be willing to sell their Bitcoin when they are in profit, data by Intotheblock suggests something else. According to the on-chain data, retail investors are unlikely to sell their Bitcoin holdings at the present time. It has been seen that Bitcoin exchange reserves have declined significantly which indicates a bullish phase for Bitcoin in the fourth quarter. This is the reason why the retail investors might not sell their Bitcoin holdings and will wait for further price appreciation.