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.
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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.
