Latest figures show that over three quarters of all existing bitcoin (76.05%) are in profit, meaning that the value is currently higher than last time it was moved. While this ratio fluctuates, historically it has remained above 50% for almost the entire history of Bitcoin.
As may be expected, there is a strong correlation between the ratio of bitcoin currently in profit and BTC price. During periods when bitcoin price has been pushing upwards to all-time and local highs then of course, profitability numbers will increase.
Similarly, in the periods when price crashes following price highs, the percentage of bitcoin in profit will go down. Although, notably, rarely to lower than 50%, and never to less than 40%.
Boom and bust cycles saw profitability numbers dip below half of all bitcoin in 2011, 2015 and 2019, towards the very bottom following the crash. However, the lowest ever recorded value was still 40.5%, following the crash from over $1,100 down to $226.
Even then, over 40% of bitcoin held was still in profit, showing both the benefit and popularity of a long-term HODLing strategy.
The steady growth period from the end of 2016 through to the end of 2017 showed the benefit that a prolonged uptrend could provide. The percentage of circulating bitcoin in profit never dropped below 80%.
In fact, on two occasions, in early May and November, profitability numbers reached record levels of over 99%. BTC price at these times was $1575 and $7234 respectively.
The slump through 2018 saw numbers fall to only 41.5% of circulating bitcoin in profit, although 2019’s rally brought numbers back up to over 92% in June.
Profitability numbers followed price back down, but only as low as 56%, before recovering to their current level of 76.05%.
Of course, bitcoin price has spent the past week on an upwards trajectory, adding over $1,000 in the course of the past five days. This means that the current profitability percentage is likely to be even higher.
As Bitcoinist reported, bitcoin price has this year bucked the January tradition by having a phenomenal month. As the month draws to a close, bitcoin is up 32%, a feat which, if repeated every month for the rest of the year, would see BTC close out 2020 with a price of over $150k.
HODLing sounds like a better strategy than ever right now.
What’s the longest you have held Bitcoin for? Let us know in the comment section below!
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