Data shows the Bitcoin supply in profit has continued its decline, but the metric has still not reached levels as low as the previous bear market bottoms. Around 50% Of The Bitcoin Supply Is In Profit At The Moment According to the latest weekly report from Glassnode, the current profitability levels in the BTC market are still above the 40%-42% values that were observed during historical bottoms. The “percent supply in profit” is an indicator that measures the total percentage of the Bitcoin supply that’s currently holding some unrealized profit. The metric works by checking the on-chain history of each coin in the circulating supply to see what price it was last moved at. If for any coin this previous price was less than the current BTC value, then that particular coin is in some profit at the moment, and the indicator accounts for it. Now, here is a chart that shows the trend in the 7-day moving average Bitcoin percent supply in profit since the January of 2014: The 7-day MA value of the metric seems to have been declining in recent days | Source: Glassnode's The Week Onchain - Week 41, 2022 As you can see in the above graph, the historical zones of the Bitcoin percent supply in profit for previous bear markets are highlighted. It looks like whenever the metric has sunk below the 50% mark, the price of the crypto has observed cyclical lows. Related Reading: Bitcoin Volatility Index Suggests Large Pric...
