BULLISH (0.70)CoinTelegraph

Bitcoin Supply in Profit Drops Below 50%

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Bitcoin's total supply in profit metric has declined below 50% in February, reaching a threshold historically associated with accumulation phases. This metric, which tracks the percentage of circulating BTC held at a profit, has previously signaled periods where long-term investors increase positions during market weakness. The current drop suggests significant unrealized losses across the network, potentially indicating oversold conditions.

Historical data reveals that the last time this metric fell to 50%, Bitcoin subsequently gained 655% over the following period. While past performance doesn't guarantee future results, this pattern aligns with cyclical behavior where capitulation precedes sustained rallies. Market participants are monitoring whether current conditions will mirror previous accumulation phases, potentially setting the stage for renewed upward momentum as weaker hands exit positions.

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