In a testament to the surging fortunes of Bitcoin investors, the crypto’s recent rally has resulted in unprecedented windfalls, fueled by a series of favorable market events. Revelations from leading on-chain analytics firm Glassnode have underscored the remarkable upswing in Bitcoin’s profitability, with a staggering number of wallet addresses currently enjoying gains. This notable occurrence is remarkable given that the current market value of BTC stands at only half of its highest-recorded peak.
Glassnode’s data, highlighted prominently, illuminates this trend. As of October 30, a record-breaking 40 million Bitcoin addresses were reported to be in profit, marking an unparalleled milestone in the cryptocurrency’s history. This surpasses the previous peak of 38.1 million addresses recorded in November 2021 when Bitcoin itself was trading at all-time highs, resulting in 100% of addresses with a non-zero balance enjoying profits.
Interestingly, despite Bitcoin’s current spot price being significantly lower than those historic levels, the total number of non-zero addresses has risen to 48.3 million. In percentage terms, the addresses in profit have soared to 81.1%, reaching an 18-month high. This uptick in profitability has been substantial, surging from 60% to 80% over the past two months, as indicated by Glassnode’s data. Conversely, addresses incurring losses presently amount to just over $9 million, a stark contrast to the over 20 million at their peak in December 2022 following the FTX meltdown.
Amidst the backdrop of conflicting macroeconomic signals from central banks, Bitcoin’s stability has been remarkable, maintaining its position around the $34,100 mark with only a marginal 0.5% decline over a 24-hour period. The contrasting stance between the Bank of Japan [BOJ] and the Federal Reserve continues to shape Bitcoin’s trajectory.
Bitcoin In Solid Ground Amidst Contrasting Macro Events
In a recent move, the Federal Reserve remained steadfast to its negative interest rate policy, keeping the short-term policy rate steady at -0.1%. On the other hand, the BOJ adopted a more flexible stance, concerning the upper limit of the 10-year Japanese government bond yield. While reaffirming the 10-year JGB yield’s target level at 0%, the BOJ indicated a willingness to consider the upper bound of 1% merely as a reference point.
This strategic adjustment brought a sense of relief to Bitcoin investors, given the cryptocurrency’s tendency to closely mirror fluctuations in global fiat liquidity. The BOJ’s Yield Curve Control [YCC] policy, in place since 2016, has notably served as a vital source of liquidity for the cryptocurrency market.