Bitcoin's recent surge in value has resulted in a significant number of blockchain addresses holding the cryptocurrency at unrealized gains. According to analytics firm IntoTheBlock, over 97% of Bitcoin addresses are currently "in the money," marking the highest proportion since November 2021 when Bitcoin reached a record high of around $69,000.Being "in the money" implies that the market value of Bitcoin exceeds the average acquisition cost of the address. Essentially, most holders purchased their Bitcoin at a price lower than the current market value of approximately $65,000.This data carries bullish implications for the market, as highlighted by IntoTheBlock. With a substantial percentage of addresses holding Bitcoin at a profit, the pressure from users looking to break even diminishes significantly. Furthermore, newcomers entering the market to acquire coins are essentially purchasing from existing users who have already realized profits.Bitcoin has surged by 54% this year, building on its impressive 154% gain in 2022. Much of this growth can be attributed to strong inflows into U.S.-based spot exchange-traded funds approved in January. The embrace of these ETFs by Wall Street has skewed demand-supply dynamics in favor of the bulls, potentially paving the way for a rally towards a new record high.The CoinDesk 20 Index, which tracks the broader crypto market, has also seen a notable rise of 37.8% this year.
