Glassnode Claims That 98% of Unspent Bitcoin Could Sell for A Profit

According to a new report from Glassnode, 98% of the unspent transactions on the Bitcoin network can easily sell for a profit. The metric shows that Bitcoins are worth more today than they were when they were deposited into the wallets.

Rising Bitcoin prices lead to profits

Bitcoin’s price recently rose above $13,000 cheering investors around the world with the rising value of their stack. Glassnode noted in a tweet that the level has not been touched since 2017 and this kind of movement is typical in a bull market. The new metric suggests that nearly all the Bitcoin deposited in wallets right now could sell for a profit. This means that the coins were bought for lesser than the current market value and are already turning a profit for the holders. The question is should you buy bitcoin?

Glassnode is referring to unspent transactions or UTXOs which means the Bitcoin that a user has the right to sell.

What is the point of the metric?

What Glassnode is essentially trying to portray is that the rising price of Bitcoin is helping make most holders of the coin profitable. At least 98% of the wallets holding Bitcoin will be able to sell their coins for a profit if they entered the markets today. Bitcoin has enjoyed a fair run in 2020. In March this year, the coin had barely touched $4,000 but has since been moving up consistently to reach $13,000.

The recent bull run for the coin is also a record 87-day streak for the coin above the $10,000 mark which has helped in boosting investor confidence in the market. In the most recent quarter, the decentralized finance (DeFi) sector has helped in bringing interest back to the crypto markets. However, the Ethereum network has been the biggest beneficiary of the trend, where most of the DeFi projects are located. Still, the growth in the markets, coupled with the bull run, could bring more investors in the market.