94% of Bitcoin Holders are Profitable

Bitcoin’s price surge above $65,000 has left 94% of its holders in profit.

According to data from IntoTheBlock, over 50.67 million Bitcoin (BTC) addresses acquired the asset below $65,500, putting them in profit. These addresses account for 94% of all Bitcoin holders.

By comparison, the remaining 6%, or around 3.37 million addresses, bought the digital asset at an average price of $68,139 and held a combined 1.58 million BTC. This distribution shows a sharp divide between profitable holders and those who have barely broken even with their investments.

Percentage of Bitcoin Holders in Money | Source: IntoTheBlock

Why did Bitcoin’s Price Surge?

Based on this analysis, only a small fraction of active addresses (approximately 3,440) are currently losing money on their holdings. The rise in the number of profitable BTC holders has coincided with favorable conditions in the broader crypto market.

One key factor in the recent price jump is the surge in short liquidations. Nearly $150 million in cryptocurrencies have been liquidated in the past day alone, with Bitcoin accounting for $63 million of that figure.

Institutional Interest and ETF Inflows

Such liquidations often push prices higher as short sellers exit the market, creating buying pressure. This is not the first time the crypto asset holders have found themselves in a profitable position.

A similar trend was observed in late September when Bitcoin’s price dropped from $65,800 to $60,000 over a few days, with many investors locking in short-term profits. Nevertheless, the overall market sentiment remains bullish, driven by external factors such as huge inflows into its exchange-traded funds (ETFs).

In the US alone, spot Bitcoin ETFs noted inflows of $555.9 million. Accordingly, the asset has gained 7.2% in the past seven days, trading at $66,558 at the time of writing.

Its market capitalization stands at $1.32 trillion, with a daily trading volume of $44.77 billion, highlighting the significant liquidity in this market. Looking at technical indicators, the digital asset’s Relative Strength Index (RSI) is hovering around 56, suggesting that the asset is preparing for further price rally.

If the RSI drops closer to the neutral level, it could trigger further price appreciation.

BTC’s Price and RSI chart today | Source: TradingView

Even though most Bitcoin holders are now sitting on gains, many may choose to hold on, expecting further price increases fueled by continued institutional interest and favorable market conditions.