Bitcoin Profitability On The Rise — More Coins Back In The Green As Market Recovers

The recent drop in Bitcoin’s price following a market crash appears to have reached its end, as the flagship cryptocurrency asset surges back above the $113,000 once again. While the price of BTC has turned bullish and has recovered from its downward trend, investors are starting to record significant gains from their holdings or positions.

Percentage Of Supply In Profit-Elevating

With the Bitcoin price back above the $113,000 level, the market is beginning to shift towards a more bullish outlook for both investors and traders. After the recent surge, there is now a resurgence in the number of BTC holdings in profit.

Darkfost, a market expert and CryptoQuant author, reported that the percentage of Bitcoin’s total supply in profit is once again trending upward, signaling a gradual recovery in market sentiment. Specifically, this implies that more coins are currently moving back into profitable territory, which is a sign that investor confidence is gradually returning to the market.

While the broader crypto market is still volatile, Darkfost highlighted that the percentage of BTC supply in profit can be a crucial Indicator of market heat. This is because this key metric will help determine whether the market is overheating or not. 

The expert stated that it is crucial not to assume that a majority of the supply being in profit is negative, but quite the opposite. In the past, a higher number of profitable investors has typically indicated a strong market since holders typically stick with their investments in hopes of future returns.

Data shows that the percentage of supply in profit has now increased to 83.6%, a level that can be interpreted as encouraging. A reason for this is that investors are once more prepared to hang onto their Bitcoin in anticipation of future gains.

Will The Market Enter An Overheated Phase?

According to Darkfost, this kind of behavior is a healthy one, which could help rebuild momentum. However, since the metric typically indicates overheated market circumstances, it will be important to keep a careful eye on it when it crosses back above 95%.

Typically, BTC has had phases of growth when the supply in profit hits 85% to 90%. On the other hand, a period of late entrants who purchased close to local tops has coincided with every significant correction in profit.

During the most recent corrections, a clear pattern has emerged. The market often enters an overheated phase and experiences a correction whenever the profit margin’s supply exceeds 95%. Furthermore, these corrections frequently reach their lowest point around the 75% mark. More specifically, the metric was 73% in September 2024, 76% in April 2024, and 81% most recently.

At the time of writing, the price of Bitcoin was trading at $115,933, due to a nearly 4% increase in the last 24 hours. Investors appear to be betting big on BTC once again, as indicated by its more than 103% in the past day.