![Heavy accumulation puts 75% of Bitcoin’s circulating supply in profit](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2023/07/bitcoin-accumulation.jpg&w=70&h=37&q=75)
Heavy accumulation puts 75% of Bitcoin’s circulating supply in profit
As 75% of supply turns profitable, echoes of previous mid-cycle patterns emerge.
![Heavy accumulation puts 75% of Bitcoin’s circulating supply in profit](https://cryptoslate.com/wp-content/uploads/2023/07/bitcoin-accumulation-768x403.jpg)
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Despite the volatility Bitcoin experienced in 2023, the extended sideways movement between February and July has proved to be fertile ground for accumulation. Onchain analysis showed that short-term holders (STHs) and long-term holders (LTHs) had steadily accumulated throughout the past quarter, indicating a strong belief in the asset’s long-term value.
Measuring Bitcoin’s supply in profit and loss is an essential part of analyzing the market. These metrics provide valuable insights into market sentiment and investor behavior — a higher supply in profit indicates that investors are holding onto their assets, expecting further price appreciation. Conversely, a higher supply in loss could signal potential sell-offs.
Between September and December 2022, during a period of significant price volatility, the supplies in profit and loss converged multiple times, reflecting the market’s uncertainty.
![bitcoin supply profit loss 2022](https://cryptoslate.com/wp-content/uploads/2023/07/btc-supply-profit-loss-converging.png)
However, the landscape has shifted since the beginning of 2023. The supplies in profit and loss have diverged, with the portion of the supply in profit increasing by over 53%. According to data from Glassnode, 14.61 million BTC is currently in profit, while 4.34 million BTC is in loss.
![bitcoin supply profit loss ytd](https://cryptoslate.com/wp-content/uploads/2023/07/bitcoin-supply-profit-loss-ytd.png)
As of July 11, 75% of the supply is in profit, leaving only 25% in loss. This significant equilibrium is reminiscent of the scenarios witnessed during the mid-points of the 2016 and 2019 market cycles. Glassnode data further revealed that 50% of Bitcoin’s trading days had seen a higher Profit-to-Loss balance and 50% a lower one.
![bitcoin supply profit loss all](https://cryptoslate.com/wp-content/uploads/2023/07/bitcoin-supply-profit-loss-al.png)
The current accumulation phase and the resulting 75% of Bitcoin’s circulating supply being in profit is a promising sign for the cryptocurrency. If historical patterns continue, this could be the mid-point in Bitcoin’s current market cycle, suggesting that a bottom has been reached and the market is currently gearing up for a rally.
However, it’s crucial to consider that while historical patterns provide useful context, they may not always predict future movements. Today’s Bitcoin market is influenced more than ever by a host of macro factors, such as regulatory developments and broader economic conditions.