Bitcoin Supply in Profit Nears Historical Bear-to-Bull Transition Level

Bitcoin's on-chain metrics are flashing signals that have preceded every major bull market since 2012. A key indicator, which tracks what percentage of all circulating Bitcoin is currently sitting in unrealized profit, has been climbing steadily throughout the summer.

According to Bitfinex, more than 71% of Bitcoin's circulating supply was last moved at a price lower than the current spot price on August 27, when Bitcoin closed at $80,256. This reading didn't stick, however, as prices pulled back in subsequent sessions, and the figure dipped to 67.7%.

By early September, with Bitcoin trading near $77,381, the supply in profit had settled around 68%, according to data from Glassnode and CryptoQuant. This represents a meaningful improvement from roughly 65% earlier in the year.

Since 2012, durable market recoveries have required the supply in profit to reach at least 64%. Sustained movements through the 60-70% range have consistently preceded more robust bullish trends.