color: var(color-red-500)

by

<a href="https://jpygbp.com/btc-usd/">Bitcoin</a>’s Current Volatility Pushes Supply Held In Profit Below Historic Bull Thresholds

After a period of downside pressure, Bitcoin’s market dynamics are starting to experience a crucial shift that could play a role in shaping its next price trajectory. With BTC’s price experiencing a decline, the supply in profit is beginning to drop, creating a highly negative environment for investors.

Percentage Of Bitcoin Supply In Profit Continues To Shrink

Bitcoin’s price is currently facing challenges around the $77,000 mark after a recent dip, impacting how the market is behaving. As a result, the percentage of Bitcoin currently held at a profit has dropped to levels not seen since earlier stages of past bull runs.

Market analyst Darkfost, writing on X, pointed out that currently only about 61% of Bitcoin is held at a profit. This decrease shows how recent market swings are affecting investors, with more and more either experiencing losses or seeing the value of their Bitcoin approach what they originally paid for it.

Although the initial number seems high, experts say it’s actually quite low. Historically, over 75% of the available supply was held at a profit during strong market periods, but this is no longer the case, signaling a shift in how the market is behaving. This decrease in profitable supply suggests that confidence is declining as the market enters a more uncertain phase.

As an analyst, I’ve observed a strong correlation between bear markets and increased losses for Bitcoin holders. Specifically, during these downturns, around 45% of the total Bitcoin supply ends up held at a loss. We recently approached a point of balance between profits and losses when the price dipped below $60,000. At that time, just over half – 51.1% – of all Bitcoin was still held by investors who hadn’t experienced a loss.

To encourage investors to continue holding Bitcoin (BTC), Darkfost explained that the market needs to maintain healthy profits. When profits become extremely high – especially if most Bitcoin owners are already in profit – the market tends to overheat and becomes vulnerable to temporary price drops.

Why The $80,000 Level Remains A Key Resistance

According to analyst Darkfost, Bitcoin needs to surpass $80,000 to continue its upward trend. This price point represents the average price short-term investors initially bought Bitcoin for, and it’s been a significant barrier since October. This suggests that those who recently bought Bitcoin are still vulnerable to losses, which could lead to more selling and cautious behavior from investors.

The chart shows Bitcoin failed again to surpass the $82,000 resistance level. It appears short-term investors are likely to sell their coins now to limit potential losses, rather than continuing to hold on.

Read More

2026-05-26 01:13