Bitcoin price drops 12.5%: only 55% of supply in profit

The Bitcoin price is under pressure. After a correction of 12.5% in one week, the price has dropped to $63.400. a decline of 5.3% in the last 24 hours. As a result, an increasing number of holders are sitting on unrealised losses. Only 55% of the total Bitcoin supply is currently still in profit, a notably low level that historically coincides with interesting moments in the market.

Bitcoin is available at OKX and Bybit.

The 50% threshold is approaching

Analyst Darkfost points to an important historical pattern. In previous bear markets, the percentage of supply in profit repeatedly dropped below 50%, meaning that the majority of holders were at a loss. In February of this year, the indicator already touched 53%, and at the current pace, a break below the 50% threshold seems imminent.

That is a bearish signal in the short term. When more than half of all Bitcoin holders are sitting on unrealised losses, selling pressure typically increases. However, not all signals are negative: the Bitcoin price is still moving well above the levels of previous cyclical lows.

Historically an opportunity for long-term investors

Those with a longer horizon see a potential buying opportunity in such periods. Darkfost argues that moments when the percentage of supply in profit drops sharply have historically always proven to be profitable entry points for patient investors. The question, therefore, is not so much whether Bitcoin will recover, but when.

As long as the price remains above critical levels and the 50% threshold has not been definitively broken, many analysts are counting on a possible bottom in this correction area. Whether that turns out to be the case depends heavily on the broader market conditions and sentiment in the coming weeks. Those who want to learn more about the history of Bitcoin and previous market cycles can draw guidance from that when assessing such corrections.