Essential Insights
- Bitcoin’s profit supply has dropped to around 59%, nearing bear-market levels, indicating increased market risk and potential accumulation opportunities.
- The share of addresses depositing BTC to exchanges hit a 10-year low, suggesting decreased selling pressure and rising self-custody trends.
- Market activity remains subdued, with spot trading low and BTC trading inside the bear market value zone, reflecting low investor conviction.
- Historically, when profit supply approaches 50%, it signals potential market bottoms, making current conditions more favorable for accumulation than selling.
Bitcoin Profit Supply Drops to 59%, Closing In on Bear Market Levels
The share of Bitcoin (BTC) supply in profit has recently fallen to around 59%. This number is important because it signals a shift in the market’s direction. Historically, when profit supply hits about 50%, the market often finds a bottom. Currently, the figure is close, suggesting a possible change ahead.
Analyst Darkfost shared this data on social media. He explained that nearly half of all Bitcoin holdings are now at a loss. This is different from recent months when more investors were in the green. The drop in profit supply indicates fewer people are eager to sell. As a result, organic demand could slow down, causing prices to pause or dip.
Darkfost also pointed out that the number of Bitcoin addresses depositing funds on exchanges is at a 10-year low. Only about 31,000 addresses are adding BTC each day. This suggests many investors are hesitant to sell or move their holdings. Such behavior often happens during long market corrections. However, it can also prepare the ground for future market stability.
Despite these signs, Bitcoin’s price remains lively. It was trading near $71,000 recently, down from a high of $73,000. Recent news like a U.S.-Iran ceasefire and Iran’s plan to use crypto for ships’ payments boosted confidence temporarily.
This period of low activity and profit-taking reluctance signals a potentially healthy phase of accumulation. Investors might see the current dip as a chance to buy before prices recover again.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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