Bitcoin Surge Sees 81% Supply In Profit, Average Short-Term Investor Holdings 20% Up: Glassnode

The explosive rally of Bitcoin this week saw 81% of its supply in profit with its average short-term investment holdings up by 20%, according to a report from Glassnode.

Bitcoin holders saw a significant appreciation in the value of the crypto asset this week with the world's first-ever crypto asset rallying from a low of around $27,000 to a peak of around $35,000, breaking multiple crucial technical metrics.

Crypto market intelligence firm Glassnode, in a recent report, shared that 24% of the supply, equivalent to 4.7 million BTC has recovered and is now being held in profit from their previous in-loss aggregate position because of the recent rally of Bitcoin.

Glassnode also underlined that 81% of Bitcoin supply is currently in profit as the market approaches its year-to-date highs with average short-term investors in an average gain of 20%.

"This move puts a majority of #Bitcoin investors back into profit, crossing into positive territory across many #Bitcoin on-chain metrics. Long-term holder supply in particular is as dormant as it has have ever been, putting in yet another ATH for the total supply held," Glassnode tweeted.

But, long-term holders are not impacted by the recent rally of Bitcoin since nearly 30% of their supply is being held at a loss, which according to the report, is high, historically.

"Approximately 29.6% of LTH Supply is held at a loss, which is actually historically high for this metric given the strong market uptrend since the 2022 lows. This is similar to late 2015 and early 2019, and the March 2020 bottom," Glassnode said, adding, "This suggests that the LTH cohort may well be a more hardened and firm handed cohort compared to prior cycles."

Bitcoin started to rally Monday as the excitement surrounding the spot Bitcoin exchange-traded fund (ETF) builds up following BlackRock's ETF application and its ticker were seen on the official website of the Depository Trust and Clearing Corporation (DTCC), with industry watchers speculating that the investment giant has started seeding money for the ETF.

BTC was trading in the green zone at $$35,003.90 as of 12:11 p.m. ET on Wednesday, with a 24-hour trading volume down by 50.71% at $27.6 billion–representing a3.71% increase in the last 24 hours and a 23.5% gain over the past seven days.

BTC's total circulating supply stands at 19,523,425 BTC, with its value up by 3.14% at a $$682.54 billion market cap, according to data from CoinMarketCap.