Bitcoin Profit Supply Nears Historic Threshold as Price Recovers
Bitcoin's profit supply is nearing a historic threshold of 74.7%, according to Bitfinex, which tracks such metrics. The current figure stands at over 71% of the total Bitcoin supply now in profit. This development follows a price recovery for BTC, which rebounded near $78,600 after briefly dipping below $77,603.
Market analysts note that prior instances when more than 71% of the Bitcoin supply was in profit have typically preceded bear-to-bull transitions. However, this signal is not a confirmed breakout indicator but rather a reflection of market structure.
The emphasis on holder supply, particularly long-term holders, gaining traction as a significant driver of low volatility. Glassnode's research indicates that long-term holder supply and illiquid supply are the primary variables explaining one-month realized volatility in the Bitcoin market.