BTC Profit Supply Surges Near Historic 74.7% Threshold

Bitcoin's profit supply has risen to near historic levels, with over 71% of its total supply now in profit. This milestone is significant, as previous moves above this threshold have typically marked a transition from bear to bull markets.

The current price recovery after the intraday low of $77,603 on Tuesday suggests that investor sentiment remains positive despite some volatility. The BTC price has recovered near $78,600, and total crypto liquidations reached $264 million, including $187 million in longs.

According to Glassnode, long-term holder supply is a key driver of one-month realized volatility, explaining it better than market capitalization, open interest, funding rates, or trading activity. This finding highlights the importance of coin ownership and its impact on market dynamics.