- Bitcoin price jumped more than 5% on Thursday to hit levels above $18,400.
- According to on-chain data from Glassnode, the price rally has helped return 13% more BTC into profit; now 60.5% of circulating supply is in profit.
- Only 47%-48% of BTC had been in profit between November 2022 and the start of January, 2023.
Per the platform, the sharp surge in percentage of supply in profit amid the latest crypto rally confirms a buy the dip scenario as prices fell in late 2022. Indeed, the metric suggests a large volume of the benchmark cryptocurrency was acquired at prices between $16,500 and $18,200.
As #Bitcoin rallies to $18.2k, over 13% of the Circulating Supply has returned to profit.
— glassnode (@glassnode) January 12, 2023
Bitcoin supply in profit jumps amid BTC rally
Bitcoin price hit lows of $15,600 in November 2022 after a violent market reaction to the collapse of cryptocurrency exchange FTX. The price bounced to above $18,000 in mid-December before bulls hit resistance and BTC tumbled to below $17,000.
The supply in profit or supply in loss metric considers the on-chain history of a coin, determining the price at which it last moved. Coins are in profit if the price at which they last moved is lower than the current price of BTC, while the percent in loss is when the current price of BTC is higher than the value of the coins when they last moved on-chain.
According to Glassnode, more than half of Bitcoin circulating supply fell into loss between November and January this year. Approximately 47%-48% of BTC supply was in profit during the period.
However, with 2023 starting positively for cryptocurrencies and BTC’s push to highs of $18,420 on 12 January, the percentage of circulating supply on profit has increased to 60.5%.
As of writing, Bitcoin price is 5.2% up in the past 24 hours and data from CoinGecko shows the flagship cryptocurrency has rallied nearly 9% in the past week.