If you were to ask the typical cryptocurrency enthusiast about the present state of the crypto market, they would likely declare that it is currently in the grips of a severe bear market.
The same could be said for Bitcoin, which has had a "disappointing" performance over the past few months. However, what if the belief that Bitcoin is in a bear market is just a myth?
Recent data from reputable sources suggest that a significant number of Bitcoin crypto wallets and addresses are profiting. In fact, AltIndex.com has published data that indicates over 65% of Bitcoin wallets are currently in profit.
After analyzing the data thoroughly, it has been revealed that the number provided is intended for addresses rather than wallets. This differentiation is necessary because a Bitcoin wallet can have multiple public addresses.
Nevertheless, it is important to note that many Bitcoin investors have made profits despite the current bearish market. This is primarily due to how Bitcoin's price fluctuated over time.
Although there have been fluctuations, the price increases have been more significant in percentage than the decreases. As of July 15, Bitcoin's price hit a yearly high of $31,500, but it currently stands at around $27k at the time of writing.
The number of addresses in profit is not the only thing AltIndex.com is claiming for. According to them, the percentage of Bitcoin investment profit has increased drastically compared to last year.
The number of traders and investors who made a profit from Bitcoin is at a higher ratio this year than the previous year. Nevertheless, it is imperative to point out a crucial fact. Many Bitcoin investors, especially the whales, don't hold their BTC tokens in a single wallet. They have a lot of wallets scattered around several exchanges and cold wallets.
Is This Calculation Correct?
Is the data provided by AltIndex.com correct, or are there inconsistencies regarding the data? One can say that the data from this source is not 100% accurate.
It is difficult to gather comprehensive information and statistics on wallets and addresses for profit. Nonetheless, the data from AltIndex.com provides a significant sample size of Bitcoin traders who are making a profit.
Although there may be discrepancies, the information from AltIndex.com indicates the amount of profit Bitcoin traders are generating during the current bear market.
The blockchain is quite transparent, so accessing and viewing data regarding many transactions from traders is straightforward. Moreover, this data only considers BTC that is still held on individual addresses.
There's an exclusion of those already sent to other addresses. Therefore, one can say 65% of BTC addresses are currently in profit compared to when they bought their assets, and they won't be wrong.
On the other hand, the number of traders who are currently in profit in the Ethereum blockchain is relatively low. In fact, the number continues to decrease as months go by. According to data from Glassnode, the percentage of Ethereum investors in profit is currently 53.2%.