Altcoins News

Story: Bitcoin Supply Metric Crashes Below Key 50% Level

By Bruce Buterin

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What the Numbers Really Mean. Bitcoin trades around $30,000 now. That's a far cry from its $60,000+ all-time high, but analysts…

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Big Players Making Moves. Binance saw trading volume spike on March 25 as Bitcoin bounced around $30,000.

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Bitcoin's supply in profit just fell below 50% in March. The metric tracks how many Bitcoin holders are sitting on gains versus losses right now, and it's hit a level that…

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Last time this happened was back in 2020. That drop below 50% came right before Bitcoin exploded upward by over 655%.

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Bitcoin trades around $30,000 now. That's a far cry from its $60,000+ all-time high, but analysts are watching this supply metric like hawks.

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The math is straightforward - when half or more of Bitcoin holders are underwater on their investments, selling pressure typically dries up. People don't want to lock in losses.

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Market cap sits at roughly $580 billion according to CoinGecko's March 26 report. That's still massive despite the price pullback from highs.

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Binance saw trading volume spike on March 25 as Bitcoin bounced around $30,000. Large buy orders hit the exchange, suggesting institutional or whale accumulation.

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Tom Lee from Fundstrat Global Advisors said on March 25: "The current dip in Bitcoin's supply in profit could serve as a buying opportunity for long-term investors.

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Cathie Wood from Ark Invest doubled down on her bullish stance during a March 24 interview. She's sticking with her $500,000 Bitcoin prediction long-term.

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Not everyone's convinced though. Analysts have drawn connections to Bitcoin Stalls Below K Mark as amid evolving conditions.

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Kraken reported increased Bitcoin futures trading on the same date. Speculators are clearly betting on big price moves coming soon.

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And regulatory scrutiny keeps hanging over the market. Macroeconomic challenges add another layer of uncertainty. But Bitcoin's proven pretty resilient through past storms.

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The 2020 parallel is hard to ignore. Supply in profit dropped below 50%, then Bitcoin went parabolic. Will history repeat?

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Some analysts think we're in a consolidation phase where long-term holders accumulate more Bitcoin while weak hands get shaken out.

The Currency Analytics

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