CryptoQuant analyst Darkfost said the share of Bitcoin supply in profit has stayed around 60% since August after excluding coins that have not moved for more than 10 years. In his view, most BTC in the market has returned to profit from a medium- to long-term perspective, while conditions still remain far from overheated. He said consolidation around current levels looks reasonable under that setup. Darkfost also argued that coins untouched for more than a decade sit in extremely deep profit, are largely illiquid, and may in many cases be lost, so removing them offers a clearer picture of current market conditions. He added that the current profit ratio is pushing investors to reassess whether to keep holding, take profit on positions held for nearly a year, or exit with limited losses, with the next move depending on the balance between supply and demand.
CryptoQuant analyst Darkfost said the share of Bitcoin supply in profit has remained around 60% since August after excluding BTC that has not moved for more than 10 years.
According to the analysis, most BTC in the market has moved back into profit from a medium- to long-term view, while the market is still far from overheated. At that level, continued consolidation is seen as a reasonable outcome.
Darkfost said coins that have been dormant for more than a decade are in extremely deep profit and are generally treated as illiquid. A large portion of them may already be lost, so excluding that segment gives a more accurate read on current market conditions.
He added that the current share of supply in profit is forcing investors to reassess whether to keep holding, take profit on positions held for nearly a year, or exit with limited losses. What comes next, he said, will be decided by the balance between supply and demand.
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