Bitcoin Supply In Profit Hits Historic Bottoming Zone Near 50%

According to a CryptoQuant report, the share of Bitcoin’s supply held in profit plummeted to 51.4%. With BTC consolidating around $63,400, the price drop has dragged nearly half of all holders straight into unrealized losses.

Déjà vu

CryptoQuant calculates supply profitability by comparing the price of Bitcoin when a coin last moved onchain against its current market value. As it stands, roughly 48.6% of the circulating supply was acquired at prices above the current rate.

During the previous cycle highs, this metric hovered near a full 100%.

The current slide to 51.4% marks the lowest overall profitability reading in over three years. The last time the network hit these sub-55% levels was in early 2023, when Bitcoin was trading in the $16,000 to $20,000 range during its post-FTX recovery phase.

Historically, when supply in profit dips below 55%, the market transitions from euphoria to full-blown capitulation. Short-term buyers who jumped in at the top are now sitting on heavy paper losses, while smart money and long-term holders typically step in to re-accumulate.

The ultimate macro reset

Researchers describe this profitability squeeze as a healthy macro reset that has thoroughly flushed out excess leverage and speculative froth.

"And while the price decline to $63,400 feels painful for late entrants, the Supply in Profit metric reaching near-coin-flip levels (50/50) acts as a healthy macro reset," CryptoQuant noted.

According to analysts, coins are actively shifting away from weak hands with high entry costs toward high-conviction buyers building long-term positions.