Bitcoin Supply in Profit Hits 57.5%, But History Suggests More Work to Be Done

The percentage of Bitcoin's supply in profit has reached 57.5% as of July 22, up from 46.2% on June 30, marking a significant recovery for the cryptocurrency. This milestone is attributed to BTC's price increase of 7% over the past 30 days, reaching around $65,100.

While this trend suggests a potential shift towards profit, history sets a higher bar for confirming an exit from bear markets. According to CryptoQuant's data, during previous bear markets, long-term holder SOPR (Spent Output Profit Ratio) consistently reclaimed 1.0, signaling a break-even point.

Historical records indicate that every real exit came with a profit cushion of roughly 64% or more. The current cycle has already seen one failed attempt, where the LTH-SOPR average held above 1.0 for 35 days, but Supply in Profit rolled back over. Today, that average sits at 0.86, below 1.0 for 51 straight days.