The world’s flagship crypto market has seen high buying pressure lately, and Bitcoin owners are definitely smiling to the bank. As data from Glassnode, a crypto analytics firm, shows, the number of Bitcoin holders in profit is at a record high.
The Bitcoin network now has 34.07 million addresses that are in a state of profit, and the percentage of those addresses resides at 94.3% despite the flagship crypto asset being close to its all-time high.
Several firms on the blockchain recently shared data on social media showing that the last time this many network entities were profitable was before the cryptocurrency’s sell-off in May, which saw it fall from a high of $64k down to under $30k.
The bull run in Bitcoin’s (BTC) price above $53k seems to have been driven by institutional buyers seeking to protect their portfolios against rising inflation, according to JPMorgan in a note to its clients on October 7. As a hedge against inflation, institutional investors may be more interested in Bitcoin than gold, according to the bank’s analysts.
In spite of the dramatic increase in cryptocurrency prices, CryptoCompare’s data shows that 16.2% of entities are making profit even though the price is up.
It has been a while since so many network entities were profitable. Over the last few days, the number of large Bitcoin transactions has surged, along with the price of the cryptocurrency. The move came as a leading crypto wallet transferred Bitcoins worth over $80 million to Coinbase, possibly as a profit-taking tactic.
It has historically been a negative month for bitcoin’s price in September, but October has traditionally seen it bounce back.
Leah Walk, the CEO of Valkyrie Investments, predicts a rise in the price of the flagship cryptocurrency about a quarter into the fourth quarter without risking a price prediction.