The profitability of Bitcoin supply has reached a high of 90%.
Although high return rates are often seen as a signal of an overheated market, in a bull market environment, this indicator actually releases a positive signal.
Looking back at the last market adjustment, this ratio once fell to around 75%, prompting a return to rationality in the market, and now it has risen back to above 85%.
Once it falls below 75%, the market will see more profit-taking behaviors, which may even trigger a selling spree. Historical data shows that if the profit margin falls by 45-50%, it often indicates the arrival of a bear market;
And when the profit supply rate breaks through 90%, the market enters an overheating stage, and the current market is approaching this critical threshold. However, past experiences show that even when a peak is reached, the subsequent adjustment periods are usually rather short.
