The Majority of Circulating Bitcoin is in Profit, Reaching a Multi-Year High
The amount of circulating bitcoin that is currently in profit has reached its highest level since November 2021, when bitcoin hit its all-time high, according to a report by Bitfinex Alpha. This data was also confirmed by Glassnode. With bitcoin trading at yearly highs above $37,000, over 83% of the coin supply is now back in profitable territory. However, Glassnode noted that the magnitude of unrealized profit is still relatively modest and not yet sufficient for long-term investors to divest.
Bitcoin Holders Seeing Positive Returns
According to Bitfinex, there are currently over 16.3 million bitcoin in profit. This represents a substantially higher percentage than the all-time average of 74%. Bitfinex analysts stated that this indicates a strong market position, with a large majority of bitcoin holders experiencing positive returns on their investment.
Increased Strength of the Bitcoin Market
Data from The Block’s dashboard also indicates the increased strength of the bitcoin market. For three days last week, the 7-day moving average of total transaction fees on the Ethereum and Bitcoin networks favored BTC for the first time since November 2020.
Long-Term Holders Accumulating Bitcoin
Approximately 70% of the total circulating supply of bitcoin has not moved in the past year, according to Bitfinex analysts. This marks an all-time high and is providing upward pressure as demand increases for limited supply. The current cycle shows a trend of continuously increasing supply, suggesting supply tightness in the bitcoin market regardless of long-term holder profitability. The analysts believe these conditions support the thesis that the market is in the early stages of a bull market.
Hot Take: Bitcoin Market Shows Strength with Majority in Profit
The recent data reveals that the majority of circulating bitcoin is currently in profit, reaching a multi-year high. This indicates a strong market position, with a large majority of bitcoin holders seeing positive returns on their investment. Additionally, long-term holders continue to accumulate bitcoin, contributing to supply tightness and upward pressure on prices. These factors support the idea that the market is in the early stages of a bull market. Overall, the strength and profitability of bitcoin suggest continued growth and potential for further price increases in the future.
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