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Quick Overview
The circulating supply of bitcoin in profit has surged to a multi-year peak, hitting over 83% this week, the highest level since November 2021 when the cryptocurrency achieved its all-time high, according to the Bitfinex Alpha report on Monday. Glassnode data also confirmed this multi-year high.Profitable Territory
"With bitcoin trading at yearly highs above $37,000 last week, over 83% of the coin supply was driven back into profitable territory," noted Glassnode on X.com. However, the analysis firm highlighted that the "magnitude of unrealized profit remains modest, and is not yet sufficient for long-term investors to divest."
Current Statistics
According to Bitfinex, over 16.3 million bitcoins are presently in profit. The report underlined that the current percentage of bitcoin in profit is notably higher than the all-time average of 74%, indicating a robust market position with a large majority of bitcoin holders experiencing positive returns.
Market Strength
Recent data from Bitfinex and other sources suggested increased strength in the bitcoin market. Approximately 70% of the total circulating supply of bitcoin has not moved in the past year, reaching a new all-time high, according to Bitfinex analysts. They stated that this situation contributes to upward pressure as growing demand competes for limited supply.
Long-Term Holder Dynamics
Bitfinex analysts observed a distinctive behavior in the dynamics of long-term holders compared to past cycles. In the current cycle, there have been 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, irrespective of long-term holder profitability.
Market Outlook
Bitfinex analysts concluded by expressing that present conditions align with the thesis 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. At the time of the report, bitcoin was trading at $37,093.
Disclaimer: This analysis is based on market data and trends, and the cryptocurrency market is subject to rapid changes. Readers should conduct their research and consider consulting financial professionals before making investment decisions.
