On-chain data shows about 2.7 million other coins have profited after Bitcoin jumped above the $25,000 level.
65% of Bitcoin Supply Currently Set in the Green
According to data from an on-chain analytics company Glassnode, an additional 20% of the regulated supply is now enjoying profits. The relevant indicator here is “inventory percent in profit.” As its name suggests, it measures the percentage of the total Bitcoin supply that currently holds unrealized gains.
The metric is made possible by going through the chain history of each coin in the circulating supply to check what price it last moved. If the previous value for any coin is less than the latest Bitcoin price, then the coin is counted according to the supply in profit.
There is a problem with this indicator, however, and it is that a large amount of dormant resources have been lost because the wallet that stores said coins is no longer accessible.
This old supply ended up being moved at a very low price compared to BTC’s current value, so it technically has unrealized profits. But as these coins disappear, they are essentially out of circulation and should not affect the current market.
For this reason, the supply in the profit indicator can gradually become inaccurate compared to the real picture. To mitigate this problem, Glassnode has come up with the “adjusted percent inventory in profit” metric, a modified version of the original indicator that filters the data of all coins older than 7 years.
Now, here is a chart showing how the value of this Bitcoin indicator has changed over the past week:
Looks like the value of the metric has observed some rise in recent days | Source: Glassnode on Twitter
As shown in the chart above, Bitcoin’s percentage supply adjusted for profit was around 45% just a few days ago when the price was floating at the $20,000 level. This means that 45% of the supply younger than 7 years has some benefit at that time.
Since then, BTC has enjoyed some clear upward momentum and has even broken above the $26,000 mark briefly before seeing a pullback to the current level of $25,000.
As a result of this rapid growth, the regulated resource in the Profit has also jumped to about 65%, which means that 20% of the regulated resource or 2.7 million coins have entered the state of Profit now.
The natural implication is that investors get 20% of the regulated supply at prices in the $20,000 to $26,000 range.
The price of BTC
At the time of writing, Bitcoin is trading around $25,100, up 13% over the past week.
The price of the asset seems to have seen some pullback since the high earlier today | Source: BTCUSD on TradingView
Featured images from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com