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BTC Network Profitability Decreases Significantly

Bitcoin (BTC) has witnessed a strong bearish market sentiment in the past few days as the world’s most dominant digital asset dropped below $20,000 amid strength in the US Dollar. Among other negative indicators, profitability across the BTC network has dipped significantly in the last week.

According to Glassnode, an on-chain analytics platform, the overall number of Bitcoin addresses in a loss reached 18.965 million on 1 September 2022, which is the highest level on record. The company added that the previous all-time high of 18.963 million was observed on 5 July 2022.

Despite challenging conditions, the total number of BTC holders has increased in the past few weeks. Glassnode highlighted that more than 900,000 Bitcoin addresses now hold at least 1 Bitcoin. The percentage of Bitcoin supply that was last active at least 12 months ago reached an all-time high of 65.749% on Thursday.

Yesterday, Bitcoin’s hash rate reached its highest level in two months. The figure is now approaching an all-time high of 231 Exahash. BTC exchange deposits, on the other hand, are plunging.

MicroStrategy and Bitcoin

MicroStrategy is one of the biggest holders of Bitcoin. According to a report from Bloomberg, Michael Saylor at MicroStrategy was sued recently over alleged tax fraud.

“Bitcoin fights with the $20k level as new fear sets in around Michael Saylor, and his company MicroStrategy, being sued for tax fraud by the District of Columbia. He is being accused of evading $25 million in taxes, for living in the region for over 10 years, and not paying income tax. As MicroStrategy is one of the biggest Bitcoin holders, crypto investors began to panic about whether Michael Saylor would have to liquidate some Bitcoin to pay for the consequential fines. Whatever the outcome, I think investors are likely overreacting to this story and MicroStrategy will not end up having to trim their Bitcoin position,” Marcus Sotiriou, an Analyst at GlobalBlock, said.

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