76% of Bitcoin Entities Are in Profit

With high volatility and a substantial drop in trading volumes, Bitcoin has struggled below the $50,000 price level over the last 7 days. Despite the small recovery of approximately 6% in the last 24 hours, the total number of profitable Bitcoin entities has decreased sharply in the last week.

Glassnode, a prominent crypto analytics platform, recently released its weekly BTC network analysis report and outlined a noticeable decrease in the percentage of profitable Bitcoin entities. According to Glassnode, almost 76% of BTC entities are currently in profit, compared to over 95% in November 2021.

While long-term holders of Bitcoin held onto their crypto assets during the market dip, short-term holders panicked and sold BTC in large amounts. As a result, realized losses increased enormously.

“Bitcoin endured a second consecutive week of price ranging, following the sharp drawdown in early December. After opening at $50,093, the price saw a high of $50,186 and a low of $45,671, a compressed range that spanned only $4,515, with BTC closing out the week down -6.1%. Many eyes were on the Federal Reserve's comments following the Federal Open Market Committee meeting on Wednesday, and broader markets generally traded in consolidation throughout the week,” Glassnode added.

Adoption

The global adoption of BTC remained unshaken even during the market drop. Earlier this week, Mexican retail chain, Elektra announced the acceptance of Bitcoin. Moreover, Nexon, one of the leading game developers in Asia, announced that the company will accept BTC.

“The adoption of bitcoin payments will be inevitable. As more large corporates, such as Travala and RadioShack, enter the space, they will bring the next wave of the utilization of decentralized technologies. In this regard, I believe Lightning Network will play a dominant role in decentralized payments, dapps, and solutions,” Paolo Ardoino, the CTO at Bitfinex, commented.