On-chain metrics show that most of Bitcoin’s (CRYPTO: BTC) circulating supply is now in profit as the digital asset climbed to $62,100 on Tuesday. 

The logic is that some holders, particularly those that bought in at higher prices may be tempted to realize profits by selling their Bitcoin position.

Still, there is some evidence to suggest the sudden sell pressure is unlikely despite the price nearing an all-time high. According to on-chain sentiment analyzer Santiment, traders are showing a “surprisingly low level of excitement.”

“With euphoric commentary being tempered, it's a good sign that prices can break records in the near future without FOMO halting momentum,” stated Santiment.

Glassnode’s analysis of the Realised Profits-to-Value Ratio (RPV) further evidences these claims.

“This metric compares the magnitude of profitable volume spent on-chain (assumed sell pressure), to the value that investors have stored in Bitcoin (sum of all coin value at the price when it was last spent),” explained Glassnode in its weekly newsletter.

“Compared to previous market tops and bull markets, the current spending is relatively insignificant compared to the network valuation. Whilst we have now confirmed that profitable coins are on the move, these metrics indicate that current demand is sufficient to absorb any sell-side pressure applied,” Glassnode said.

BTC Price Action: On Tuesday morning, Bitcoin was trading at $62,248.58, gaining 0.22% over 24 hours.

Photo: Michael Förtsch on Unsplash