Bitcoin Supply in Profit Rises, But Analysts Say Bear Market Still Ongoing

Bitcoin's recent price recovery has brought more than half of its supply back into profit. According to CryptoQuant, Bitcoin's Supply in Profit rose to 57.5% as of July 22, up from 46.2% on June 30.

This means that over a three-week period, the price of BTC gained around 7%, trading near $65,100. However, despite this improvement, analysts believe that Bitcoin has not yet reached the levels that historically confirmed the end of bear markets.

Using the 30-day average Long-Term Holder SOPR reclaiming 1.0 as the regime-change signal, previous bear markets ended only after a much larger share of Bitcoin's supply returned to profit: April 2012 at 69%, November 2015 at 64%, May 2019 at 83%, and April 2023 at 77%.

The current reading is 57.5%. The analyst pointed out that the Long-Term Holder SOPR has fallen to 0.86, indicating that long-term holders are still not consistently realizing profits.