Bitcoin Profitability Hits 55%, But Falls Short of Historical Recovery Levels

Bitcoin's recent recovery has improved investor profitability, but it still hasn't reached levels seen during previous cycle highs. According to CryptoQuant data, profitable supply increased from 46.2% on June 30th to 58% on July 21st, with over 10% of the circulating supply going into realized profits as BTC bounced off the mid-$50,000s to the $60,000s.

However, at press time, profitability had retraced back to 55.2%, falling short of previous recovery levels that ranged from 64% to 83%. Long-term holders are still accumulating, while short-term holders have continued to sell close to their cost basis with STH SOPR currently at 1.0.

Whale profitability also suggests growing conviction in the market, as investors who regain profitability often face a choice between realizing gains and continuing to hold. The largest groups of whales have remained profitable through the entire decline and only had minor drops in profitability.