Bitcoin Supply in Profit Nears Historical Bull-Bear Threshold
The percentage of Bitcoin's circulating supply in profit has been steadily climbing throughout the summer, nearing a historical bear-to-bull transition level. According to data from Bitfinex and Glassnode, more than 71% of Bitcoin's circulating supply is currently sitting in unrealized profit.
This metric, which tracks what percentage of all circulating Bitcoin was last moved at a price lower than the current spot price, has been a reliable indicator of major bull markets since 2012. In August, Bitcoin closed at $80,256, pushing 72.1% of the supply into profit territory.
However, prices pulled back in subsequent sessions, causing the figure to dip to 67.7%. By early September, with Bitcoin trading near $77,381, the supply in profit had settled around 68%, representing a meaningful improvement from roughly 65% earlier in the year.
Sustained movements through the 60-70% range have consistently preceded more robust bullish trends, and analysts believe that reaching at least 64% is crucial for durable market recoveries. On the other hand, approximately $617 billion in invested capital remains underwater, creating resistance zones that can slow or stall rallies.