Bitcoin volatility is subdued with over 71% of supply in profit, approaching a historical level that has marked bear-to-bull transitions.
Macro & Markets ·
More than 71% of bitcoin's supply is currently trading in profit, according to analysis by Bitfinex. This metric approaches a threshold that historically has coincided with transitions from bear to bull market cycles. Concurrently, bitcoin volatility has remained subdued in recent trading activity.
The proportion of profitable supply serves as a sentiment indicator tracked by market participants to gauge conviction and positioning across the network. Levels at or near historical peaks in this metric have previously aligned with regime shifts in price direction, though such observations are retrospective and do not predict future outcomes.
What remains unclear is whether this level will again prove to be a inflection point or if current market conditions differ materially from prior episodes. The sustainability of subdued volatility and the trajectory of the supply-in-profit metric over coming weeks will likely inform whether this setup translates into directional movement.