According to Glassnode data, an additional 32.3% of Bitcoin’s supply to date has shown gains through the 2023 rally.
More than 6 million Bitcoin are profitable again
In the most recent weekly report Glassnode reports that a total of 6.2 million BTC returned to profitability this year. This is measured by the “percentage supply in profit” indicator, which shows what percentage of the Bitcoin supply has currently achieved a certain amount of unrealized profit.
This metric works by going through the on-chain history of each coin in circulation and checking at what price it last moved. If the previous price of a coin was lower than the current BTC value, then this specific coin is currently considered profitable and will be added to the total value of the indicator.
Strong rebound since start of rally
In general, the higher the percentage of the offering in profit, the more likely it is that investors will sell and collect a portion of their accumulated profit. This increases the likelihood of peaks forming as the value of this statistic increases.
On the other hand, low values of this indicator suggest that much of the supply is currently loss-making, giving holders of the coins little incentive to sell them.
Recently, this indicator reached its lowest point after the crash due to the collapse of FTX. ‘Only’ 44.7% of the supply (approximately 8.6 million Bitcoin) remained within profit margins.
Since the start of the rally this year, the said statistic has shown a strong rebound. Currently, about 77% of the Bitcoin supply (or about 14.8 million BTC) is profitable.
Compared to the beginning of the year, an additional 6.2 million BTC have become profitable, representing approximately 32.3% of the total BTC supply. Finally, this significant increase suggests that much of the supply has changed hands at a price lower than current levels.