- Bitcoin price rose by more than 5% to $18,400 on Thursday
- Glassnode has reported that 13% more BTC was converted into profit by the price rally. Currently, 60% of the circulating supply is in profit.
- Only 47%-48% had made profit from BTC between November 2022 – January 20, 2023.
Bitcoin’s breakout to prices above $18,200 has seen 13% more of circulating supply return into profit, on-chain data from Glassnode says.
According to the platform, the sudden rise in supply in profit during the most recent crypto rally confirms that there is a buy-the-dip scenario as prices plummeted in 2022. The metric indicates that a large amount of benchmark cryptocurrency was purchased at prices between $16,500 to $18,200.
As #Bitcoin The Circulating Supply returned to profit after a rally to $18.2k
— glassnode (@glassnode) January 12, 2023
BTC rally causes Bitcoin supply to increase in profit
The November 2022 market reaction to the collapse FTX caused Bitcoin’s price to plummet to $15,600. BTC dropped to $17,000 below its December lows, but the price recovered to $18,000 by mid-December.
The supply in profit metric or the supply in loss metric takes into account the on-chain history and determines the last time a coin moved. The price at which coins last move is less than the current BTC prices, and the percent of loss is the price at present that is higher then the value of the coins on-chain.
Glassnode claims that over half of Bitcoin’s circulating supply was in loss between November 2015 and January 2016. Between November and January this year, approximately 47% to 48% of Bitcoin supply was in profit.
However, with 2023 starting positively for cryptocurrencies and BTC’s push to highs of $18,420 on 12 January, the percentage of circulating supply on profit has increased to 60.5%.
Bitcoin is currently at 5.2% higher than the previous 24 hours. CoinGecko data shows that the main cryptocurrency has rallied almost 9% over the past week.
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