Did you know that over 83% of the circulating Bitcoin supply is now profitable? This is the highest it’s been since November 2021, when Bitcoin, the world’s leading cryptocurrency in terms of market capitalization, reached its all-time high. This data was revealed in a recent Bitfinex Alpha report and confirmed by Glassnode.
Bitcoin’s Profitable Territory
With Bitcoin’s trading price soaring above $37,000 last week, a significant portion of its supply was pushed back into the profitable zone. However, Glassnode, a blockchain analysis firm, stated that the extent of unrealized profit remains modest and insufficient for long-term investors to cash out.
According to Bitfinex, over 16.3 million Bitcoins are currently profitable. This is significantly higher than the historical average of 74%, indicating that the market is in a relatively strong position. A vast majority of Bitcoin holders are now seeing positive returns on their investments.
Bitcoin vs Ethereum
Recent data from The Block’s dashboard also pointed to the strengthening of the Bitcoin market. For three consecutive days last week, the 7-day moving average of total transaction fees on the Ethereum and Bitcoin networks flipped in favor of Bitcoin for the first time since November 2020.
Long-term Holders and Bitcoin Supply
Bitfinex analysts revealed that approximately 70% of Bitcoin’s total circulating supply has remained stagnant in the past year. This is a new all-time high and is causing an upward pressure as increasing demand meets limited supply.
Interestingly, the current dynamics of long-term holders differ from those observed in past cycles. The present cycle has witnessed fewer dips and oscillations in long-term holder supply due to spending, indicating a trend of continuously increasing supply. This suggests a degree of supply tightness in the Bitcoin market, regardless of long-term holder profitability on a substantial scale.
Bitfinex analysts concluded their report by stating that the current conditions support the idea that the market is in the early stages of a bull market. “Bitcoin continues to show strength while still in a range for the time being,” they added.
For those looking to keep track of these dynamic shifts in the cryptocurrency market, the cryptoview.io application is a valuable tool. It provides real-time data and insights into various cryptocurrencies, helping users make informed decisions.
Note: Always do your own research before investing in cryptocurrencies. The information provided here is for informational purposes only and should not be considered as financial advice.
