Bitcoin Smashes the Charts: Nearly 70% of the Supply Returns to Profit

Bitcoin has just returned a clear majority of its supply to profit. After rising from about 62,000 dollars to almost 80,000 in one week, 69% of the circulating BTC now show a value higher than their on-chain reference level. The rebound has therefore repaired part of the losses. Not all: about 617 billion dollars of capital are still underwater.

Bitcoin Returns 69% of Its Supply to the Green

The movement accompanies the violent rebound observed since mid-August. Bitcoin had returned to the 80,000 dollar range after several months of high volatility. CryptoQuant now estimates that 69% of the supply is in profit. The indicator compares the current price with the BTC reference level observed on-chain. When a bitcoin is above this level, it is classified as “supply in profit”.

The recent rise has therefore tipped many coins to the good side. A few days earlier, the situation seemed much less comfortable. Bitcoin had dropped to around 62,000 dollars after several successive corrections.

Then the price rose by more than 25%. Holders who had bought or moved their BTC around 65,000, 70,000, or 75,000 dollars gradually regained a positive position. 69% of the supply. The figure is impressive.

A Large Part of Profitable BTC Moves Almost No More

It is necessary, however, to look at the composition of this supply. Bitcoin has spent most of the current cycle with more than 50% of its coins in profit. According to data taken by CryptoQuant, the ratio fell below this threshold for only about 15 days before the July rebound.

A large part of the concerned bitcoins has also been dormant for a long time. Long-term holders had already significantly reduced their sales. In July, 79% of Bitcoin’s supply was in the hands of long-term investors. Some of these BTC were acquired at very low prices.

A bitcoin bought ten years ago is obviously still profitable at 70,000 or 80,000 dollars. Whether it goes from 62,000 to 78,000 does not change much for its owner. This mechanically inflates the share of profitable supply. The 69% thus informs about the state of the network. It does not mean that 69% of the money invested recently in Bitcoin is making money. And this is where the numbers become less comfortable.

617 Billion Dollars Are Still Underwater

CryptoQuant also looks at the capital involved. The result differs strongly. About 617 billion dollars linked to the BTC supply would still be at a loss despite the rebound. A large part of the money that arrived at higher levels has therefore not yet recovered its losses.

Investors who entered near previous peaks are still waiting. That is also why a return of Bitcoin towards 80,000 dollars is not enough to consider the market completely repaired. Levels above still concentrate many holders likely to sell once back in balance.

The market will have to absorb them. CryptoQuant is already monitoring a higher zone. The company estimates that Bitcoin should break about 83,000 dollars to more clearly confirm the return of a bull market. BTC is not far from it anymore. The rebound has already brought 69% of the supply back into profit. The 617 billion dollars still in the red simply remind that part of the work remains to be done.