This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Nearly 89% of the Bitcoin supply is currently in profit, which could indicate that the market is approaching a peak after its recent surge. This analysis of Bitcoin’s supply dynamics reveals a pattern of profit and loss convergence, which is a significant indicator of market fluctuations. Out of the approximately 19.3 million Bitcoin in circulation, around 17.3 million are in profit, while 1.9 million are at a loss.
The convergence of supply in profit and loss, where losses surpass profits, has historically marked the bottom of Bitcoin cycles. This phenomenon has been observed during bear markets in 2015, 2019, 2020, 2021, and 2022. Currently, the Bitcoin market is experiencing a high level of divergence, with almost 89% of the supply in profit. Although slightly below the cycle highs when the profit figure reaches 100%, this situation still indicates a market peak where every holder is making a profit.
This trend analysis highlights the cyclical nature of the digital asset market and the potential for profit and loss convergence, which serves as an indicator of market turns.