On December 5, Bitcoin is trading above $42,000 and has gained over 2% in the last 24 hours. This increase has brought optimism to investors due to expectations of a possible Bitcoin ETF approval and the upcoming Bitcoin halving in 2024.
The rise in the leading cryptocurrency‘s value in 2023 has been rewarding for Bitcoin holders. According to IntoTheBlock data, 88% of Bitcoin holders are in unrealized profits. Wallet addresses that bought BTC at lower prices are now in a profitable position. On the other hand, 1% of Bitcoin holders bought their tokens at higher prices and 11% are in unrealized losses. The data indicates a positive sentiment among investors benefiting from the price movements in the crypto market.
69% of investors are long-term Bitcoin holders, holding their coins for more than a year, while 31% have held for less than 12 months, and 7% for less than a month. According to IntoTheBlock, only 11% of all circulating BTC is held by individuals classified as “Whales” who hold more than 0.1% of the circulating supply.
Despite the recent price increase, IntoTheBlock summarizes Bitcoin signals as “Mostly Bearish.” Four indicators are neutral, two are bearish, and one is bullish. The Active Net Growth and Large Transactions indicators show a bearish outlook with -0.27% and -1.06%, respectively.
The increase in the number of profitable Bitcoin holders may indicate a potential trend change. The larger the number of investors “In Profit,” the higher the likelihood of them selling their positions and realizing their profits. In October, 82% of Bitcoin holders were reported to be in profit, which increased to 85% in November.