On-chain analytics firm Glassnode revealed that with Bitcoin's price surpassing $11,000, approximately 93% of the circulating supply entered a profitable state — the highest level in over a year. As of press time, BTC was struggling to hold that momentum, dipping below the $11k range multiple times on Tuesday.
On-Chain Profit Ratio Hits One-Year High
Glassnode tweeted: "BTC's break above $11,000 has led to a sharp increase in the onchain supply in profit. Currently, almost 93% of the circulating bitcoin supply is in a state of profit – the highest level in over a year." The metric calculates profitability based on the cost basis of each UTXO, showing that most holders acquired their coins at lower prices.
Realized Price Recovers from Black Thursday
In addition, Bitcoin's "realized price" has fully recovered from the March 12 (Black Thursday) market rout. Seven-day data from Glassnode indicates that the realized price has doubled. Realized price, which weights each coin by its last moved price, reflects the aggregate cost basis of all coins. After Black Thursday when BTC plunged to $3,800, the realized price dropped sharply but has now resumed its upward trend.
Long-Term Holder Ratio Reaches All-Time High
Another key metric shows increasing HODLing behavior. Bitcoin advocate Kevin Rooke stated: "62% of Bitcoin supply (11,400,000 BTC) has not moved in at least a year." This ratio is a new all-time high, indicating that more investors are treating Bitcoin as a long-term store of value rather than a trading asset.
Moreover, data from Lookintobitcoin reveals that Bitcoin has been profitable over 97% of its lifespan, further reinforcing its appeal as a long-term investment.
Central Bank Policy and Bitcoin Outlook
The current optimism in the crypto market is closely tied to the macroeconomic backdrop. The U.S. dollar and Treasury bonds have weakened recently, and many economists expect the Federal Reserve to suppress benchmark interest rates this week. Vijay Ayyar, head of business development at Luno, believes central bank stimulus will continue to boost digital assets. "My view is that with the major governments declaring unprecedented stimulus packages … we will see continued bullish momentum across markets. So that includes equities and gold as well. And BTC and crypto will follow in this regard. Added to the fact that a vaccine seems within reach as well now, no reason to be bearish near term," Ayyar said.
Miners Need Higher Prices
Despite widespread profitability among holders, Bitcoin miners face challenges. After the May 11 halving, miner revenue was cut in half. A report from blockchain analytics provider Tradeblock shows that Bitcoin needs to reach $12,525 per coin for miners to break even, and $15,062 per coin would significantly improve profits. This means current prices remain about $1,500 short of the level where miners can thrive.
Overall, on-chain metrics paint a healthy picture for Bitcoin, but whether the price can sustain above $11,000 remains to be seen. Investors should monitor macroeconomic policy changes and potential miner selling pressure.