K33 Research indicates that over half of Bitcoin's circulating supply is now held at a loss, a condition historically associated with market bottoms. This metric, known as 'percentage of supply in profit,' suggests that the current price level around $60,000 could be nearing a cycle low. While past cycles often saw a final capitulation event, the significant portion of underwater supply points to exhausted selling pressure. This development is crucial for Bitcoin as it signals a potential end to the current correction phase, paving the way for a recovery if accumulation continues. Investors should monitor for further signs of capitulation or a strong bounce from this psychological support.
Over 50% of Bitcoin supply being underwater signals a potential capitulation phase, historically preceding market bottoms. This suggests institutional accumulation could soon absorb remaining sell pressure, establishing a stronger foundation for future price appreciation.
This data reveals a market structure where long-term holders are experiencing significant unrealized losses, indicating a mature correction. Such conditions often precede a re-accumulation phase, implying a bullish reversal is increasingly probable.
More than half of Bitcoin supply is underwater as K33 sees $60K near a cycle bottom, though history leaves room for one final price decline.