Bitcoin's Supply in Profit Surges Near 90%, Hints at Bullish Momentum

Bitcoin's Supply in Profit Nears 90%, Signaling Bullish Trends

CryptoQuant's latest data highlights a significant surge in Bitcoin's Supply in Profit, a key metric indicating the portion of circulating BTC currently in profit. This metric is approaching the 90% level, a threshold historically associated with euphoric market phases.

What is Supply in Profit?

Supply in Profit measures the percentage of Bitcoin's circulating supply that is currently worth more than when it was last moved or purchased. As this metric rises, it suggests a growing number of investors are in profit, often fueling bullish sentiment.

Historical Context and Implications

CryptoQuant analyst Darkfost notes that when Supply in Profit exceeds 90%, it has historically triggered "euphoric phases" in Bitcoin's market. Currently, the metric stands above 85%, a level considered "fairly positive." However, the analyst cautions that these euphoric phases can be short-lived, often followed by corrections.

Market Outlook and Risks

While the current trend is bullish, Darkfost warns that if Supply in Profit drops below 75%, it could trigger profit-taking or even a capitulation event. This underscores the volatility inherent in Bitcoin's market cycles.

Conclusion

Bitcoin's Supply in Profit nearing 90% signals strong bullish momentum, but investors should remain cautious of potential corrections. The metric serves as a critical indicator of market sentiment and potential price movements.