CryptoQuant reports $617 billion in Bitcoin still at a loss despite price surge

Profitability metrics suggest mixed outlook

According to recent data from CryptoQuant, an on-chain analytics platform, 69% of Bitcoin’s circulating supply is currently in profit. This proportion reflects the share of Bitcoin held at wallet addresses where the coins now trade above their last-known purchase price.

Typically, a large share of Bitcoin supply in profit is viewed as a bullish indicator. When most holders see positive returns, investor sentiment and confidence often rise, potentially driving additional demand for the cryptocurrency.

CryptoQuant data reveals that while a majority of Bitcoin supply is in profit, this has not translated into gains for all investors, due in part to large holdings that remain unmoved for years.

Despite the optimism driven by the recent surge, market analysts highlight that similar supply-in-profit metrics have occurred throughout the current cycle. Bitcoin’s supply in profit has remained above 50% for most of this period, only falling below that level during a 15-day stretch ahead of July’s rally.

Much of the supply counted as “in profit” consists of tokens that have remained dormant for extended periods. Many of these dormant Bitcoins might not move for years, affecting the accuracy of profitability metrics as indicators of wider market sentiment.

CryptoQuant’s analysis also maintains that although the percentage of profitable Bitcoin has climbed, a substantial amount of the total invested capital is still underwater.

Capital invested still faces losses

As of the latest data, the total dollar value of Bitcoin’s outstanding supply stands above $1 trillion. Out of this, approximately $617 billion in capital remains at a loss, indicating that many investors’ positions are yet to return to positive territory.

The figures demonstrate that while profits have improved across a broad segment of holders, a considerable share of the invested money has yet to break even despite the strong price recovery.

The gap between the number of tokens in profit and the amount of capital still at a loss underscores how dormant coins and previously acquired positions can distort surface-level market readings.

Recent analysis suggests continued caution among some investors and market observers, as deeper capital remains below breakeven despite improved sentiment and market activity.

CryptoQuant is a blockchain data analytics firm based in South Korea, known for delivering real-time on-chain data and market insights for cryptocurrencies.

Mini dictionary: CryptoQuant, a blockchain analytics platform that offers on-chain data, insights, and research for cryptocurrency market participants.