Analysis: Bitcoin Supply in Profit Surges as Price Rebound Lifts Share to 69%

Bitcoin's recent price rebound has sharply increased the share of the cryptocurrency's supply that is now back in profit.

Axel Adler Jr., a CryptoQuant contributor, wrote on Sept. 11 that 69% of Bitcoin's total supply is currently in profit. Over the past 90 days, the share of supply in profit has risen by 41 percentage points, according to his analysis.

A chart he shared showed the 90-day change in profitable supply climbing steeply over a short period and surpassing 40%. That suggests a large volume of Bitcoin that had previously been at a loss has shifted into profit amid the recent price rise.

Adler Jr. also urged caution in interpreting the jump in the indicator. The key question, he wrote, is whether the move is being driven by a sustainable increase in demand or by a mechanical repricing after a sharp price surge. In the past, similar short-term spikes in supply held at a profit were followed by a rapid weakening in upward momentum.

He added that for Bitcoin to extend its gains, the market will need sustained demand rather than a temporary wave of buying driven by a short squeeze.