"They said if you hold on, you'd win"...Bitcoin's Profitability Plummets to 59%

▲ Bitcoin (BTC), Dollar (USD)/AI Generated Image

The proportion of Bitcoin (Bitcoin, BTC)'s total supply in a state of profit has fallen to 59%, leading to a diagnosis that the market has effectively entered deep into a bear market.

On April 9 (local time), crypto media outlet CryptoPotato, citing data from on-chain analytics platform CryptoQuant, reported that Bitcoin's supply in profit ratio is currently at 59%. This figure is close to the low levels recorded during the 2022 bear market and in 2018, indicating that investor sentiment is extremely subdued.

The supply in profit metric indicates the proportion of circulating Bitcoin where the purchase price is lower than the current price. While this figure typically exceeds 90% in a bull market, a breach of the 60% line, as seen currently, is historically interpreted as a market bottom or a severe recession. The analysis that even long-term holders have begun to enter loss territory as Bitcoin's price continues its six-month consecutive decline is gaining traction.

The Market Value to Realized Value (MVRV) Z-score has also fallen to 0.60, signaling a warning. The MVRV Z-score is an indicator that compares Bitcoin's market capitalization with its realized capitalization to measure whether an asset is overvalued or undervalued. Typically, if this index falls below 0.5, it is considered a historical buying opportunity at a market bottom, but with the current strong downward pressure, the possibility of further declines cannot be ruled out.

Market experts warn that if Bitcoin fails to hold the $60,000 level, additional sell-offs could occur. An anonymous on-chain analyst explained, "The current Bitcoin market is moving very similarly to the six-month consecutive decline pattern of 2018," adding, "If institutional buying does not flow in while individual investors' fear index is at its peak, securing support levels will not be easy." Bitcoin is currently struggling to find a rebound amidst intertwined macroeconomic uncertainties and geopolitical risks.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*