The share of Bitcoin supply that is profitable has reached 90%—a critical indicator that may signal potential changes in the cryptocurrency market.
This is reported by Business • Media
Critical Level and Its Impact on the Market
Research from the analytical platform CryptoQuant indicates that when the share of profitable Bitcoins exceeds 90%, it often coincides with periods of market euphoria. Conversely, a decline in this metric below 90% has historically been a precursor to corrective phases in the market.
It is noted that the long-term average of this share is around 75%. According to analysts, during so-called bull cycles, over 90% of all coins are profitable, while bear phases typically begin after this metric falls below the key threshold.
Euphoria or Correction: Expert Opinions
Experts emphasize that a large share of profitable coins is not a negative signal for the market. On the contrary, this factor fuels waves of market euphoria. At the same time, they state that the market bottom is formed when the share of profitable Bitcoins drops below 50%.
“The share of Bitcoin supply that is profitable has reached 90%.”
Previously, Glassnode noted a decline in activity in the Bitcoin network, as well as profit-taking by long-term holders of the first cryptocurrency. This may indicate the end of a certain phase of the market cycle.