Bitcoin Profitability Soars, But Recovery Remains Fragile

Bitcoin's supply in profit is on the rise, with over 57.5% of its total supply now worth more than its acquisition price.

This improvement has been steady since July, but CryptoQuant notes that it's too early to confirm a new bull market.

The spent output profit ratio (SOPR) for long-term holders (LTHs), which measures the proportion of LTH coins moving onchain at a higher price relative to their previous transaction, has also improved.

However, the 30-day simple moving average (SMA) of LTH-SOPR remains below 1, indicating that LTH investors are still selling coins at a loss.

ThechessONCHAIN, a contributor to CryptoQuant, notes that previous bear markets have only ended when both supply in profit and LTH-SOPR meet specific requirements, including the total supply in profit being above 64%.