With bitcoin more than doubling in price since “Black Thursday” nearly two months ago, nearly 85% — or 25.79 million — of addresses holding the cryptocurrency are now “in the money,” according to blockchain intelligence firm IntoTheBlock. However, the current state of the bitcoin market is warning of a post-halving price pullback.
The number one cryptocurrency by market value is trading near $10,000 at press time – up nearly 160% from the low of $3,867 registered on March 12, according to CoinDesk’s Bitcoin Price.
An address is said to be in the money if the current price of bitcoin is higher than the price at which the coin was purchased or sent to the address.
While 85% of the addresses are in the money, 10.8%, or 3.28 million addresses are out of the money or have acquired coins at an average price higher than the current market price. The remaining 4.1% (1.24 million) are at the money, meaning the average price they acquired their bitcoin is around current market levels.
Such a structure may not bode well for the cryptocurrency in the near term. With the majority of addresses already in a state of profit, some observers expect selling pressure to emerge over the weekend or following the mining reward halving expected on May 11.
“We anticipate a number of investors will take advantage of rising prices ahead and into the halving to realize gains in the short term,” said Ed Hindi, CIO of Tyr Capital Arbitrage SP, which focuses on liquidity provision and arbitrage within the cryptocurrency markets.
Meanwhile, market intelligence firm Glassnode tweeted on Thursday that more than 80% of the current bitcoin supply is profitable and significant increases to BTC’s price in anticipation of the halving could trigger some to realize gains in the short term.
Increased retail participation
A post-halving drop looks quite possible because the retail…