The past week has not been too great for Bitcoin holders. In the price department, BTC seems to be on a rather slippery slope all of a sudden. This results in a lower percentile of the Bitcoin supply in profit, although those who are part of the 80% will not see any real differences.
The Bitcoin Supply Percentage in Profit
It is important to understand how Bitcoin’s ecosystem works at its core. There are a limited number of coins. Some of those coins are lost forever, but they still reside in a blockchain address. As such, “early minted” BC is still in massive profit today, regardless of what the recent market sentiment may have been.
At the same time, most other people who ever obtained Bitcoin – through buying or otherwise – will still be in profit. This metric can be measured by looking at the Bitcoin supply in profit on Glassnode. It is a valuable representation of how much of the circulating Bitcoin supply was last moved and at which price. Current statistics confirm the vast majority of the Bitcoin supply remains in a healthy profit.
Even though the Bitcoin supply in profit percentile has taken a hit lately, there is no real concern just yet. Coins are moved on the network regularly, either when prices are higher or lower compared to today. This metric is evolving constantly, but there is an important aspect. Over 80% of the BTC supply remains in profit, even despite the recent market drop.
With Bitcoin going from over $11,000 to $10.300, there is no real change in profitability. There will be some who bought between these levels, and who face a deficit right now. Overcoming that dip – a 1.8% decline in the past week – will elevate this percentile again.
Looking at the Bigger Picture
Bitcoin is, and will often be, a very volatile asset. It has no stable price floor in the slightest. Some may see this as a problem, whereas others appreciate this speculative nature. Judging by the historical chart, the Bitcoin supply in profit has never dropped below 40%, which tells a very unique tale of its own.
Investing in Bitcoin – or other crypto assets – should never be about short-term profits. Especially for established currencies, the long-term vision is crucial. Bitcoin is a long-term investment. It has the potential to serve as a retirement fund for many. A few dips along the way are nothing to be too concerned about.