Recent analysis by Glassnode revealed that 88% of Bitcoin's supply is currently profitable. This suggests potential market stability despite associated volatility.
Percentage of Bitcoin in Profit
According to Glassnode, 88% of Bitcoin's current supply is in profit. This figure reflects significant market resilience during periods of price volatility. The high percentage of Bitcoin holders in profit also indicates confidence in market stability, allowing traders who bought at higher prices to continue realizing gains.
Market Analysis and Volatility
Analyst Axel Adler Jr noted that the Composite Volatility Index remains at -3.5%, indicating an accumulation phase. The vital market metric, MVRV, stands at 1.74, which historically corresponds with market consolidation. Additionally, the Realized Profit/Loss Ratio has risen above 1.0, indicating a shift in sentiment among traders.
Long-Term Outlook for Bitcoin
The high profitability metric underscores investor confidence in Bitcoin's long-term value. Traders are likely adapting their strategies based on historical patterns, which may contribute to continued market stability. The current price range may suggest a potential bottom, as seen in previous market corrections.
Overall, the high percentage of Bitcoin holders in profit and current metrics indicate a potential continuation of market stabilization. Historical analysis and observable trends provide financial analysts and traders with grounds for making strategic decisions.
