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83.6% of Bitcoin in circulation delivers unrealised profit

23 Nov, 2023
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Currently, 16.4 out of a total 19.5 million Bitcoin in circulation are trading above their "starting" price. In other words, 83.6% of Bitcoin in circulation represent unrealised profits for their holders. The last time this level was reached was during the 2021 bull market.

Image source: glassnode.com

The market has already gone through a bearish phase, where less than 58% of the coins issued were profitable (minus one standard deviation), and is now in a recovery phase that will continue from 58% until 90% of coins are profitable. Between 90% and the setting of a new all-time high (+1 std), a phase of euphoria will take place.

Image source: glassnode.com

The strength of the current trend is well conveyed by accumulation sentiment, which remains at a maximum across all investors from shrimp (<1 BTC) to whales (≥1000 BTC). This is due to market participants' expectation of a full-fledged rally on the back of the approval of spot ETFs in the US. 

Image source: glassnode.com

It is also noteworthy that the volume of coins in the hands of short-term holders (STH) hit an absolute low of 2.3 million BTC. This indicates market participant's strengthening faith in a period of protracted growth, many of whom have stopped spending their coins and have therefore moved into the long-term holders (LTH) category of investors. The volume of coins in LTH hands hit an all-time high of 14.9 million BTC.

Image source: glassnode.com

Despite the BTC price more than doubling in 2023, the number of people willing to part with their coins is vanishingly small. 

Image source: StormGain cryptocurrency exchange

If the expectations prove correct, this trend will be met by significant demand from institutional investors, and, come April, a reduction in the per-block mining reward.

Image source: coinshares.com

Over the past 12 months, capital inflows into exchange-traded funds (ETFs) from institutional investors have already reached $1.2bn, half of which came in the past four weeks. If the ETF is approved, most analysts expect a hundred-fold increase in the indicator.


StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)


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