99.02% Of All Bitcoin Supply In Profit: Glassnode

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

What Happened: Crypto analytics platform Glassnode reported that 99.02% of BTC tokens are currently being held at an unrealized profit.  With #Bitcoin attacking $60k once again, only 0.98% of the circulating supply was last spent at higher prices.
 

Owners of this 185,816 $BTC HODLed throughout all the volatility, the ups, and the downs of the last 6 months.

99.02% of all $BTC supply is now in profit. pic.twitter.com/B7C8QUX5r3

— glassnode (@glassnode) October 15, 2021

Glassnode also found that owners of 185,816 BTC held their coins despite the volatility in crypto markets over the past six months. But, with just 0.98% of circulating supply spent at higher prices and high levels of open interest in Bitcoin futures markets, some market participants are wary of a potential price correction could soon be underway.

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