Contrary to what many might think, having a large share of supply in profit is not inherently negative, on the contrary, it is even necessary to fuel the waves of euphoria that the market relies on.
The long-term average, defined by the bell curve, sits at 75%. In other words, since Bitcoin’s inception, the average share of supply in profit has been around 75%
.
Bull phases are often accompanied by more than 90% of supply being in profit.
Conversely, dropping back below this 90% threshold has very often marked the beginning of a corrective phase, whether short or long term.
During bear markets, bottoms tend to form when the share of supply in profit falls below 50%.
We have now just reached this critical 90% level.
Written by Darkfost
