CryptoQuant analyst Darkfost said on Oct. 7 that since August, roughly 60% of Bitcoin supply has remained in profit after excluding BTC that has not moved for more than 10 years. He said those long-dormant coins are now in deep profit and have low liquidity, with a meaningful share potentially lost, so removing them offers a clearer view of current market conditions. According to the analysis, most BTC has moved back into profit territory, but the market is still some distance from overheating on a medium- to long-term basis. Darkfost added that investors are now weighing whether to keep holding, take profits, or exit positions with limited losses, especially for holdings kept for nearly a year. In that setting, BTC continuing to trade sideways around current levels would not be surprising, with the next move still dependent on the balance between supply and demand.
According to BlockBeats, CryptoQuant analyst Darkfost said on Oct. 7 that since August, about 60% of Bitcoin supply has remained in profit after excluding BTC that has not moved for more than 10 years.
Why the long-dormant supply was excluded
Darkfost said BTC that has been inactive for more than a decade is now deeply in profit and carries low liquidity. A considerable portion of that supply may already be lost, so excluding it gives a more accurate picture of current market conditions.
What the metric suggests now
He said most BTC has re-entered profit territory, while the market still appears far from overheating in the medium to long term.
Darkfost added that investors are now choosing between holding, taking profits, or closing positions with limited losses, especially for positions that have been held for nearly a year. Against that backdrop, BTC continuing to move sideways near current levels would not be unexpected, and the next move will still depend on the balance between supply and demand.
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