Bitcoin jump above $25k sends 2.7 million more coins into profit

On-chain data shows that around 2.7 million more coins have gone into profit after Bitcoin’s jump above the $25,000 level.

65% of the adjusted Bitcoin supply is now in the green

According to data from the analysis company at the chain Glass node, another 20% of the adjusted supply now enjoys profit. The relevant indicator here is the “percentage contribution in profit.” As the name already implies, it measures the percentage of the total circulating Bitcoin supply that currently has unrealized gains.

The metric works by going through the chain history of each coin in the circulating supply to check what price it was last moved to. If this previous value for a coin was less than the last Bitcoin price, that coin is counted during the offer in profit.

However, there is a problem with this indicator, and that is that a large amount of dormant supply has been lost because the wallets that store said coins are no longer available.

This old supply was last moved at very low prices compared to the BTC value today, so it technically has a huge unrealized profit. However, since these coins are lost, they are essentially out of the circulating supply and therefore should not affect the current market.

Due to this reason, the offer in profit indicator can gradually become inaccurate compared to the actual picture. To mitigate this problem, Glassnode has come up with the “adjusted percentage in profit” calculation, a modified version of the original indicator that filters out 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 graph above, the Bitcoin-adjusted percentage in profit was around a value of 45% just a few days ago when the price was floating around the $20,000 level. This means that 45% of the offer younger than 7 years had some gains at that time.

Since then, BTC has enjoyed strong upward momentum and even broke above the $26,000 mark briefly before seeing a pullback to the current $25,000 level.

As a result of this rapid growth, the adjusted supply in profit has also seen a big jump to around 65%, meaning that 20% of the adjusted supply or 2.7 million coins have entered a profit state now.

A natural implication is that investors bought 20% of the adjusted supply at prices in the $20,000 to $26,000 range.

BTC price

At the time of writing, Bitcoin is trading around $25,100, up 13% in the last week.

The price of the asset seems to have seen some pullback since the high earlier today | Source: BTCUSD on TradingView

Featured image from Kanchanara on Unsplash.com, Charts from TradingView.com, Glassnode.com