Bitcoin Supply in Profit Reaches 99.3%, Analysts Warn of Possible Correction
- 99.3% of the total Bitcoin supply is currently profitable at a market price of approximately $121,900.
- Historically, when Bitcoin’s profit supply exceeded 99%, price corrections ranged from 3% to 10%.
- The Crypto Fear and Greed Index has risen to a score of 63, indicating increased market optimism.
- Record weekly inflows into Bitcoin ETFs reached $3.2 billion in early October, reflecting strong institutional interest.
- Analyst Ted Pillows suggests that high profitability levels may lead to profit-taking and subsequent price corrections.
The current high level of profitability among Bitcoin holders typically prompts profit-taking behavior, which could lead to temporary price declines before resuming an upward trend. The combination of rising investor sentiment and significant ETF inflows indicates robust market confidence.
With Bitcoin’s supply in profit at an unprecedented level, analysts are closely monitoring for potential corrections while noting that the sentiment has not yet reached extreme greed levels seen in previous cycles.(Source)
