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Bitcoin Price Rally Ensures 100% of Holders Profit

Last Updated March 4, 2024 3:59 PM
Shraddha Sharma
Last Updated March 4, 2024 3:59 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • Every Bitcoin holder is currently making a profit, thanks to the BTC price reaching a new all-time high.
  • The total exchange inflows and outflows indicate more money is leaving exchanges than entering.
  • The price rise comes days after the European Central Bank (ECB) dismissed BTC as a speculative bubble.

Bitcoin’s price rally has ensured that 100% of its holders are now in profit. This figure was calculated by comparing the current price of Bitcoin to the average cost at which tokens were acquired.

While there are indicators of bullish momentum for Bitcoin, it contrasts sharply with the skepticism still echoed by traditional institutions.

Profitability in all Bitcoin Investments

Bitcoin price has reached a profitability point for all investors. If the market price exceeds the average purchase price, the holder is deemed “In the Money,” making a profit on their investment. According  to IntoTheBlock analysis, the current market price of Bitcoin is higher than the price at which all holders initially bought their tokens. None of the holders are at a loss or breaking even at current price levels.

Considering Bitcoin is approaching its next halving event, the indicator is deemed bullish. Meanwhile, the money flowing in and out of cryptocurrency exchanges also backs the positive outlook. Over the week to March 4, exchanges have seen a total of $19.79 billion entering and $20.7 billion leaving them. This net outflow suggests more investors are choosing to hold onto their BTC, possibly in anticipation of further price increases, rather than cashing out.

Bitcoin Holders Profitability | Source: IntoTheBlock
Bitcoin Holders Profitability | Source: IntoTheBlock

The Crypto Road Ahead 

The current market optimism comes days after the European Central Bank (ECB) criticized Bitcoin. In a recent blog post, ECB officials argued  that Bitcoin’s fair value is still zero. The articled labeled BTC a speculative bubble that has failed to fulfill its promise as a decentralized digital currency. The ECB’s cautionary stance underlines the ongoing debate between traditional financial authorities and the digital market after the regulatory approval of Bitcoin ETF.

According to Rekt Capital, Bitcoin is currently navigating through a Pre-Halving Rally, a period characterized by hype-driven investments. Historically, this phase leads to a short-term drop just before the Halving event, followed by a longer period of re-accumulation and, eventually, a parabolic upturn. The Bitcoin halving event should take place in April 2024.

Bitcoin Halving Cycle
Bitcoin Halving Cycle | Source: Rekt Capital/X

That said, according  to Coinshares, digital asset investment products recently experienced nearly record-breaking inflows. In the last seven days, these inflows amounted to $1.84 billion, with trading volumes surging to over $30 billion. A significant portion of these inflows, 94% or $1.73 billion, was directed towards Bitcoin.

Overall, the total assets under management for digital assets is at $82.6 billion, approaching the November 2021 record of $86 billion.

A Strong Halving Rally 

The current Bitcoin price rally has not only made every holder profitable but has also reignited warnings of speculative bubbles.

Meanwhile, the exchange and on-chain movements and investor sentiment suggest that the trajectory will continue to go up. In this cycle, the Bitcoin halving is dictating how BTC reacts in 2024.  

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