Bitcoin (BTC) Profitability Reaches Highest Levels Since November 2021
Recent statistics indicate that the amount of Bitcoin (BTC) currently in profit has reached its highest levels in several years.
Bitcoin in Profit Reaches Record High Since November 2021.
Image: VnEconomy
Record Bitcoin Profitability
The amount of Bitcoin currently in profit has surpassed 16.3 million BTC, equivalent to 83.6% of the circulating supply. This marks the highest level since the cryptocurrency reached its all-time high (ATH) of $69,000 in November 2021, as measured by Bitfinex Alpha.
Bitfinex Alpha is back with news that 70% of all Bitcoin supply has been untouched for a year, as the HODLers dominate the market ✅
— Bitfinex (@bitfinex) November 27, 2023
Over 80% of BTC is now in the green, but the hodlers are untempted to sell 📈https://t.co/kn8aOcfjfQ pic.twitter.com/AXsh6CDNv4
Aggregate data from Glassnode corroborates this figure:
"Following Bitcoin's new 2023 high at $38,000 last week, over 83% of BTC supply has transitioned into a profitable state."
However, analysts caution that "unrealized profit margins are still modest and insufficient to trigger long-term investor divestment."
With #Bitcoin trading at yearly highs above $37k last week, over 83% of the coin supply was driven back into profitable territory.
— glassnode (@glassnode) November 22, 2023
However, the magnitude of unrealized profit remains modest, and is not yet sufficient for long-term investors to divest.https://t.co/IGJpglF20J
Bitcoin supply in profit. Source: Glassnode
Bitfinex analysts add:
"The significantly higher Bitcoin profitability rate of 74% indicates a relatively robust market, with the majority of Bitcoin holders seeing positive returns on their investments."
Data from The Block also illustrates Bitcoin market strength. Over the past three days, the 7-day moving average (7DMA) of total transaction fees on the Ethereum and Bitcoin networks has reversed in favor of BTC for the first time since November 2020.
7-day moving average (7DMA) of total transaction fees on Ethereum and Bitcoin networks. Source: The Block
Long-term holders accumulating Bitcoin
Bitfinex's research team dissects data, revealing that approximately 70% of the total circulating Bitcoin supply has been "inert" over the past year, marking an unprecedented milestone. This creates upward price pressure amid increasing demand and limited supply.
The report also highlights behavioral differences among current long-term Bitcoin holders compared to previous cycles.
"At present, fewer long-term holders are selling or converting Bitcoin into cash (spending money), reducing supply volatility from this group. Additionally, unrealized profit levels held by investors have not yet been sufficient to prompt spending, keeping overall supply relatively tight."
In conclusion, Bitfinex analysts suggest that the market is in the early stages of a bull market.
At the time of writing, Bitcoin is trading around $37,197, adjusting slightly after quietly surpassing the $38,400 mark on November 24.
1D chart of BTC/USDT pair on Binance at 09:02 AM on 28/11/2023
