On-chain data shows 99% of the circulating Bitcoin supply has unrealized profits again. History may have the hint for where the market could head next.

99% Of The Circulating Bitcoin Supply Has Unrealized Gains

As pointed out by a CryptoQuant post, the profit percent of the circulating BTC supply has reached 99% once again as the coin rallies past $59k.

The profit percent indicator used here shows the ratio of transactions with unrealized profits versus the total number of transactions.

“Unrealized profits” here refer to those gains that investors haven’t taken yet. The indicator looks at the chain for coins that if sold today will net some profit compared to when they were last transacted.

Now, here is a chart that shows the trend in this indicator for Bitcoin over the last few years:

Profit percent of the circulating BTC supply since 2017 | Source: CryptoQuant

As the above graph shows, 99% of the circulating Bitcoin supply now has some unrealized gains. Since 2017, there have been two other instances where similar values were observed.

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The first time was in 2017. The indicator reached values as high as 99.9% back then, and kept up above 99% values for a while. It is during this period with such sustained high values that BTC price went on to have the historic parabolic bull run.

The only other time this has happened was from late 2020 till early 2021. Bitcoin showed a similar trend back then as well and went to make the current $65k all time high (ATH).

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As the indicator is now approaching similar values as those times, it’s possible the trend could make a repeat now too. The key here could be the sustained period of high values.

During the leadup to the 2018 bull run, high values were present but they didn’t last too long and the run fizzled out early. It’s possible this may happen now as well.

BTC Price

At the time of writing, Bitcoin’s price floats around $59.3k, up 8% in the last seven days. Over the last month, the crypto has gained 25% in value.

The below chart shows the trend in the value of the coin over the last five days.

BTC continues to make a strong push up | Source: BTCUSD on TradingView

Over the last couple of weeks, Bitcoin has showed big momentum up as the crypto has now broken the $59k price mark. It’s unclear how long BTC can keep this up, but indicators are for the most part showing bullish signals for the coin right now. If the profit percent indicator keeps the trend up, perhaps BTC will make a new ATH soon.