Bitcoin Supply in Profit Reaches Two-Year High, Market Remains Modest

According to CryptoPotato, the volume of Bitcoin supply in profit has reached levels last seen two years ago, following the market's November 2021 all-time high. Analytics provider Glassnode reported in its 'Week on Chain' that the magnitude of unrealized profit held within these coins remains modest. The percentage of Bitcoin's circulating supply currently held in profit reached 83.6% or 16.36 million BTC during last week's rally. This is historically significant, being well above the all-time mean value of 74%. Bitcoin rallied to its highest level of the year, tapping $37,900 on November 16. However, it has currently retreated 4% from that high as markets continue to cool. Glassnode reported that this recent surge has seen greater accumulation patterns than others this year. There were two significant rallies in late January and late March when prices jumped 40% and 50%, respectively. This leg-up has seen a gain of around 40% from $26,800 in mid-October to last week's high. The crypto market has been within the bear/bull transition phase for the past ten months as it recovered from the 2022 crypto winter. The October rally is the first sustained break above average transition phase trading levels. In terms of long-term holder spending and profitability, Bitcoin markets have now entered an 'equilibrium phase,' which usually precedes the 'euphoric' bull market rally. As a testament to market strength and overall sentiment, news of the CEO of the world's largest crypto exchange stepping down after getting a huge fine from the US Justice Department has not rattled the markets as much as many expected. Total market capitalization has fallen just 3% over the past 24 hours, with around $60 billion leaving the space. However, recovery has already started to be seen during the Wednesday morning Asian trading session, with the total cap returning to $1.43 trillion. BNB is the biggest loser, dropping 20% at one point, but Bitcoin and Ethereum are down marginally and well within typical daily trading ranges.