Nearly 70% of Bitcoin's Supply Now in Profit

Bitcoin's recent price breakout that saw it briefly touch $80,000 from a low of around $62,000 within just a week has helped most of its investors recover from their losses.

Following the major price comeback, recent analysis showcased on crypto analytics platform CryptoQuant shows that 69% of its supply is now sitting in profit.

Bitcoin supply metric not entirely bullish

Notably, having such a large share of its supply in profit provides a bullish outlook for Bitcoin, as it suggests that many Bitcoin holders are back above their purchase prices, which tends to strengthen investors' confidence.

However, it appears that this is not entirely the case, as the broader Bitcoin supply-based metric paints a mixed picture that has sparked concerns among market analysts.

Previous data shows that Bitcoin's supply in profit has remained above 50% for most of the current cycle, which does not make it particularly unique to the recent market rally.

Notably, the metric only dipped below that level for 15 days, particularly before the recent rally in July.

While Bitcoin's supply in profit has always remained at a majority share, the data shows that the high percentage was fueled by Bitcoin tokens that have remained dormant for years, some of which will stay in the same position for longer.