Bitcoin Hits New Milestone As Nearly 84% Of BTC's Circulating Supply Is In Profit

Bitcoin has reached a new milestone as nearly 84% of its total circulating supply is currently in profit, a feat it has not seen since November 2021.

The world's first-ever crypto asset continued to reach new heights as its price lingered between the $37,000 and $38,000 price territory.

The recent surge in its value saw more than 16.366 million BTC or 83.6% of the circulating supply in profit, a level last seen in November 2021 when the crypto market had just retreated from its all-time high (ATH), according to on-chain marketing intelligence Glassnode.

"With market trading reaching year-to-date highs, more than 83.6% of Bitcoin supply is currently in the black, the highest level since November 2021 (near all-time highs)," Glassnode said in a report last week.

However, it pointed out that while a lot of Bitcoin is in profit, "the size of unrealized profits held in these coins remains modest and has so far not been enough to incentivize long-term holders to lock in profits."

"The extent of unrealized profits held by investors has so far not been enough to incentivize long-term holders to sell, keeping total supply relatively tight," it added.

In terms of overall accumulation, the report noted that the latest Bitcoin rally, based on the Cumulative Trend Score, has shown a much stronger accumulation pattern compared to the previous rallies this year, which supported a 39% price spike over the past 30 days.

BTC supply holdings also reached 83% of the total circulating supply, which according to Glassnode, is historically significant from a statistical perspective since it is above the 74% historical average and could push toward a 190% higher standard deviation.

The indicator going beyond this particular limit aligned with the market entering the "early stages bull market" or the "euphoria phase."

The report also pointed out the increasing disparity in supply held by long-term and short-term holders. The supply of long-term holders hitting ATHs since November 2022 had climbed to 14.9 million BTC, while short-term holder supply had dropped to an all-time low of 2.3 million BTC.

"This dynamic suggests that existing holders are increasingly reluctant to part with their holdings, as they have historically waited for the market to break out to a new all-time high price. This can be explained by investors requiring higher unrealized profits (size) before increasing their selling pressure," the report explained.

Bitcoin, the world's first-ever crypto asset and the largest in terms of market cap, was trading in the green zone at $37,722.93 as of 7:25 a.m. ET on Sunday, with a 24-hour trading volume down by 57.54% at $8,399,760,280. Bitcoin's price action represented a 0.17% increase in the past 24 hours and a 3.2% gain in the last seven days.

Data from CoinMarketCap showed that BTC's circulating supply stands at 19.55 million BTC, while its value continues to climb up by 0.18% at a $737,553,736,800 market cap.