Bitcoin surges past $50,000 as loss-holding supply dwindles to 13%, Glassnode says

Analysts at blockchain firm Glassnode say the vast majority of Bitcoin holders are now at profit, with only 13% of the total supply held in a state of loss.

With Bitcoin (BTC) reaching the $50,000 mark last seen in December 2021, only 13% of the total supply now held at a loss.

According to Glassnode’s data, approximately 87% of Bitcoin was acquired below the $48,000 mark, with a significant concentration of short-term holders (those holding for less than 155 days) clustered between $40,000 and $45,000. In contrast, long-term holders, defined as those holding for more than 155 days, primarily constitute the remaining 13% of the supply held in a loss position.

Analysts add the total volume of long-term holder supply held in loss is currently around 777,000 BTC, and is “trending towards the zero bound” as prices soar. Only 6.5% of the aggregate long-term holder supply is therefore held in loss, Glassnode explains.

“Previous instances where the LTH [long-term holder] cohort held a similar coin volume in loss corresponds with early bull market conditions (with 2019 as an arguable outlier).”

Glassnode

The shifting price dynamics coincide with a notable change in sentiment within the crypto community, as evidenced by the Fear and Greed index, which recently reached 79 out of 100 points for the first time since Bitcoin’s all-time high in November 2021.

This surge in sentiment is deemed “extremely high,” especially when compared to mid-October 2023 when the index only recovered to a neutral 52 points, anticipating the approval of spot Bitcoin exchange-traded funds (ETFs), as previously reported by crypto.news.