Onchain
Highlights

DEFINITION:

The
percentage
of
circulating
supply
in
profit,
i.e.
the
percentage
of
existing
coins
whose
price
at
the
time
they
last
moved
was
lower
than
the
current
price. 

Bitcoin’s
percentage
supply
in
profit
reflects
dynamic
market
conditions.
The
first
chart
illustrates
historical
data
from
2013
to
2024,
showing
periods
where
over
90%
of
the
supply
was
in
profit,
particularly
during
2017
and
late
2020
to
early
2021.
This
period
correlated
with
significant
price
rallies,
highlighting
the
cyclical
nature
of
Bitcoin’s
market.

 

In
contrast,
the
second
chart
focuses
on
the
past
12
months,
from
mid-2023
to
mid-2024,
showing
a
significant
decline
in
the
percentage
of
supply
in
profit.
After
reaching
a
peak
of
approximately
100%
in
March
2024,
just
before
the
Bitcoin
halving
event,
the
metric
has
since
dropped
to
80%
by
June
2024.
This
decline
mirrors
the
price
drop
from
nearly
$73,000
to
roughly
$60,000
within
the
same
period.

These
trends
highlight
the
market’s
volatility
and
the
influence
of
key
events
like
the
halving
on
Bitcoin’s
profitability
metrics.
Monitoring
the
percentage
supply
in
profit
can
provide
insights
into
market
sentiment
and
potential
price
movements,
as
significant
shifts
often
precede
or
follow
major
price
changes.