While Bitcoin prices have dropped significantly from their $69,000 high, they continue to hold high levels. Even though most investors have been around for some time, they are making a lot of money while few are losing. However, this shows how valuable the digital asset has become. The vast majority of investors could still sell the assets and make profit.
74% of Bitcoin Holders Still in Profit
According to data from IntoTheBlock, 74% of bitcoin owners are still in profit. Investors like these would be able to profit, as some have started realizing the profit through the current market downturns. The majority of bitcoin investors have seen gains despite the declining price over the past month.
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This means that 18% are at risk of losing their investment. These investors, who purchased bitcoins for $52,000 or more, would be in the loss category if current prices were to be believed. The remainder of the investors (7%) remain in neutral territory. These investors bought bitcoins at or near the current trending prices of digital assets.
74% are BTC investors in profit. Source: IntoTheBlock| Source: IntoTheBlock
The majority of bitcoin investors have kept their assets for more than one year. This puts 56% of them in profit territory. The majority of the 33% who have kept their bitcoins for between 1 and 12 months have been successful, while only 11% of those holding their coins have remained inactive for longer than one year.
It’s safe to say that most of those in loss are those in this last category as they would have bought their bitcoins at the height of the bull rally that sent the digital asset to new all-time highs.
Inflows of Exchange Signal Supply Squeeze
Even though most bitcoin investors are now in profit, inflows to exchanges have been underperforming outflows. The seven-day moving average scale shows that total outflows from the exchanges has been almost $1 billion higher than inflows.
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Inflows to bitcoin exchanges in the past seven days totalled $7.54 Billion, and outflows were $8.27 Billion. The coins leaving exchanges faster than they are coming in signals an imminent supply crisis.
This also indicates a bullish sentiment from investors. Investors are likely to consolidate their coins and move them to safe self-storage to keep the currency in check for long-term.
BTC breaks above $50,000 | Source: BTCUSD on TradingView.com
Featured Image from Bitcoin Profit. Charts from IntoTheBlock.com and TradingView.com.