Quick Take
Analyzing the supply dynamics of Bitcoin reveals a telling story of profit and loss convergence, a significant indicator of market fluctuations. Of the approximately 19.3 million Bitcoin in circulation, an estimated 17.3 million are in profit, leaving 1.9 million at a loss. The convergence of supply in profit and loss – where losses supersede profits – serves as a marker for the bottom in Bitcoin cycles. This phenomenon has been observed recurrently during bear markets, particularly in 2015, 2019, 2020, 2021, and 2022.
Supply in profit vs loss: (Source: Glassnode)
Presently, the Bitcoin market is navigating one of its most extensive divergence levels, with almost 89% of Bitcoin supply in profit. This is only slightly below the cycle highs when the profit figure hits a stunning 100% – a situation indicative of a market peak where every holder is in profit. This trend analysis underscores the cyclical nature of the digital asset market and the inherent potential for prof
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