​One-third of bitcoin’s supply has returned to the profitability zone since the beginning of the year

What’s new? According to analytics portal Glassnode as of April 17, about 77% (14,8 million coins) of the total bitcoin volume is in the profit zone due to the asset crossing the $30 000 bar. A total of 6,2 million BTC (32,3% of the supply) has returned to the green zone since the beginning of the year. Experts also noted that bitcoin’s weekly yield reached 36% for the second time, again making it the most profitable asset class in 2023.

Glassnode’s data

How does the metric work? Analysts used the “percent supply in profit,” which shows how many bitcoins currently have unrealized profits. The metric uses viewing the history of each coin in circulation and checking what price it was last sold at. If the selling price was lower than the current price, the coin is in the profit zone.

As a rule, the higher the value of the “percent supply in profit,” the more likely it is that investors will start to sell the asset. Low values of the indicator, on the contrary, signal about losses and a lack of investors’ motivation to sell coins.

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At the time of the FTX cryptocurrency exchange crash last November, the indicator reached its lowest point, only 44,7% of supply (about 8,6 million BTC) was profitable. With the beginning of the rally in the crypto market, the indicator also showed growth and since January, 33,2% of the volume has been added to the previous figures.

As of April 18, 15:00 UTC, BTC is trading at $30 271 on Binance, having added 2,93% in 24 hours. The weekly growth of the asset, according to aggregator CoinGecko, amounted to 1,9%.

Situation in the crypto market. On April 11, the BTC rate overcame $30 000 for the first time since June 2022. The number of bitcoins inactive for two years reached an all-time high, accounting for 53% of the circulating supply.

Analytics firm Santiment said the continued rise in the number of long-term holders of bitcoin could signal the start of a bull market. A similar trend was seen from January through April 2021, when the BTC rate rose above $64 000 for the first time. In November of the same year, the asset set an all-time high of $69 000.

According to Larry Lepard, head of Equity Management, the bitcoin rate could rise to $10 million as a result of the dollar crash, and its key advantage over gold will be limited issuance.