- About 12.7% of Bitcoin’s total circulating supply became profitable during the recent rally.
- The supply of Bitcoin on exchanges was just over 6% of the total supply.
Bitcoin [BTC] has maintained its yearly highs in recent weeks, following the June rally that cheered market participants and gave them hope. Compared to the November 2022 lows, this was a remarkable turnaround as prices have nearly doubled to $31,288.40 at the time of writing, data from CoinMarketCap revealed.
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The supply of profit is increasing
The rise in prices increased the overall profitability of the Bitcoin network. According to on-chain analytics company Glasnodeaggregate profit offerings surged to an 18-month high on July 13.
As shown in the chart below, much of this stock was accumulated during the market’s dip to $25,000 in mid-June. Consequently, nearly 2.47 million loss-making BTC tokens, representing 12.7% of the total circulating supply, became profitable.
Source: Glassnode
On the other hand, the supply fell to just 4.79 million at a loss, reminiscent of levels seen during the July 2021 bull market. With a win-loss ratio of 75:25, the market entered a phase of equilibrium as according to Glassnode’s analysis.
Also referred to as the “re-accumulation period,” this phase historically follows the recovery from the lows of a bear market, and trends sideways over an extended period of time.
Traders HODLing through
While the network was making profits on average, there were no clear indicators that investors were making a profit. At the time of publication, Bitcoin supply on exchanges was just over 6% of total supply, indicating little liquidity for spot trading.
In addition, whale addresses, which were active during the first few days of the recent bull market, have significantly reduced their exchange interaction. The number of transactions transferring BTC coins worth more than $100,000 fell from the recent peak.
Source: Sentiment
Read Bitcoin [BTC] Price Forecast 2023-24
Open interest rises
While BTC has been largely isolated from the regulatory battle in the US market, the news of payments-focused crypto Ripple [XRP] clearing a major legal hurdle could add more bullishness to the king coin in the coming days.
At the time of writing, BTC was up 2.06% to $31,186.79, according to CoinMarketCap. Speculative interest in BTC increased significantly over the past 24 hours. According to Coinglass, Open Interest (OI) in BTC futures contracts rose nearly 5% to $14.9 billion, a new yearly high.
Source: Coinglass
