Bitcoin (BTC) Profitability Drops as Whale Transactions Slump 46%
The long slump in the price of Bitcoin (BTC) over the past few days has triggered a reversed growth in the premier coin’s profitability overall. Compared to a few weeks ago, the number of profitable addresses on the network is now less than 100%.
Bitcoin (BTC) Recording Sliding Metrics
Besides the price of the cryptocurrency which has dropped to $67,237.24, down by 1.21% in the past 24 hours and by more than 3% over the past week, other important growth metrics are down as well. Per data from the crypto analytics platform IntoTheBlock, the drawdown in the price of the coin has triggered a drop in the Daily Active Address (DAA) by 4.02% to approximately 930,730.
The major highlight is the slip in profitability. Per the IntoTheBlock data, the number of addresses “In the Money” comes in at 50.1 million, accounting for 96.39% of the total in the network. This is a significant plunge from the 100% recorded when the premier coin jumped to an All-Time High (ATH) above $73,000 over the past week.
The number of addresses “Out of the Money” comes in at 870,100 or 1.67% of the total registered on the network. Addresses “at the money” or breakeven point come in at 1.01 million or 1.94% of the sum on the network.
To return to the point where the Bitcoin profitability will return to the 100% mark, the price will have to retest the $68,992.54 to $72,500.92 range. As the IntoTheBlock data showed, as many as 877,770 BTC were stacked up by more than 870,000 addresses, pegging this range as the ultimate resistance point.
Whale Interest and Volume Slumps
Amid the Bitcoin rally, the actions of whale buyers were very prominent. Besides BlackRock and other spot Bitcoin ETF issuers making large daily accumulations, MicroStrategy also doubled down on its accumulations over the past weeks.
However, at this time, data from IntoTheBlock reveals that large transactions worth $100,000 and above have slumped by 46.98% at the time of writing. The volume has now dropped to $41.32 billion as of March 16, down from $116.22 billion recorded on March 13.
These sliding metrics show that the sentiment in the market is low. However, analysis indicates that this bearish twist is a healthy correction that might help usher in an epic rebound in the near term. With the spot Bitcoin ETF and halving sentiment on the horizon, Bitcoin price might have found an anchor around the $65,000 price level.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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