On-chain analysis of Bitcoin - 59% of holders in profits

NOTE: Not a financial advice, just analyzing data. All of the data I have collected was from IntoTheBlock.

As of today, BTC has a $528,292,489,973 market cap which puts it on #1 spot on CoinMarketCap.

All time low is at $0.003 while all time high is at $68,789.63 which makes a 76,543,688,889% gain (MIND BLOWING).

We all know Bitcoin is basically the so called “king” of crypto. Everything moves with it. And it has always been at the #1 spot.

Price through the years.

Market cap through the years.

There are in total 49,09 million addresses that hold BTC (we can't count all the cold wallet addresses, so the number is higher). But for the addresses that we can count here is the data:

28.99m Addresses which is 59.04% are in PROFITS

17.61m Addresses which is 35.87% are in a LOSS

2.5m Addresses which is 5.09% are at BREAK EVEN

Pie chart of addresses in profits, loss and break even.

On the bottom graph, you can see the percentage of accounts in profit and in loss over time in correlation with the price. It's interesting to note that there isn't a lot of orange (holders in loss) on this graph, which is quite remarkable when you compare it to other altcoin graphs, most of which are predominantly orange. This graph illustrates why people say that Bitcoin is the safest of all cryptocurrencies. It's even more remarkable to think that this data goes back to 2011. To have such a long period of holders in profit is truly astonishing.

Number of addresses in profits and loss through the years.

Here is just a simple graph showing circulating supply and price, as you know Bitcoin is being mined and the supply is constantly rising but in a slower pace. The maximum supply of 21 million bitcoins will be reached around the year 2140, after which no new bitcoins can be mined.

Circulating supply and price.

The Daily Active Addresses graph tracks the number of new addresses, total active addresses and zero balance addresses. These are defined the following way:

New Addresses

Newly created addresses that receive their first deposit in this particular crypto-asset.

Active Addresses

Addresses that made one or more on-chain transaction(s) on a given day.

Zero Balance Addresses

Addresses that transferred out (potentially sold) all of their holdings for this particular crypto-asset.

Nothing special about this graph, everything just moves according to price.

The Daily Active Addresses graph.

The Total Addresses graph monitors three key metrics:

Total Addresses: All addresses ever created one point have held a particular crypto-asset, including those that still do.

Total with Balance (Holders): All addresses that currently hold this particular crypto-asset.

Total Zero Balance: All the addresses that used to hold a crypto-asset but no longer do.

From this graph, it appears that at some point, nearly every wallet has held BTC, and this trend doesn't seem to be stopping.

The Total Addresses graph.

The bottom graph displays the number of transactions for a particular crypto-asset on a given day. This data is based on what is shown in the blockchain, therefore transactions taken within exchanges are not recorded unless they occur on-chain. It is interesting to me that the highest number of transactions has occurred right during the bear market that is happening now. Not quite sure why, maybe accumulation is happening.

Number of transactions.

The average time that a token stays in an address before being transferred is quite high for BTC. This suggests that buyers view BTC as a long-term investment and prefer to hold it for an extended period.

Average time token is held.

The Concentration pie chart shows the distribution of a crypto-asset’s circulating supply. Assets with high supply concentration will have whales and/or investors controlling most of the volume, while assets with low supply concentration have most of the circulating supply held by retail users. You can see that with Bitcoin almost 90% of volume is held by retail, which is a lot.

The Concentration pie chart.

We can see that the number of holders is increasing, which confirms the thesis that people view Bitcoin as a long-term investment. Altcoin graphs, on the other hand, look quite different; they don't have as many holders as we see here. Both holders and traders have upward-sloping graph lines, while the traders' graph lines are mostly flat.

Number of Hodlers, Cruisers and Traders through the years.

Holdings Distribution Matrix:

Holdings Distribution Matrix.

THE END.