Bitcoin holders Adaman shows a new high in their position as an inactive offering: Bitfinex

Most Bitcoin owners are currently seeing positive returns on their investments, but have been reluctant to realize their profits.

According to this week's edition of the Bitfinex Alpha report, more than 83% of the BTC supply is currently held at a profit. This is the largest percentage gain since November 2021, when bitcoin reached an all-time high of $68,000.

Bitcoin holders will protect their position.

Bitcoin's recent surge to new annual highs has put the largest circulating supply in profit. However, the amount of unrealized profit of the owners is not particularly large. Unrealized profit is the difference between the current and original purchase prices of Bitcoin.

Citing Glassnode data, analysts estimate that 16.366 million BTC, about 83.7% of the total circulating supply, is currently profitable. The percentage is significantly higher than the all-time average of 74% and is approaching the upper limit of the +1 standard deviation band, which is currently around 90%, indicating that the crypto market is in a relatively strong position.

Despite the number of bitcoins in surplus, on-chain metrics show a decline in the activity of long-term investors (LTHs), suggesting that this group of investors is interested in holding onto their assets.

The inactive supply of Bitcoin has reached a new high

Much of the BTC distribution supply has been dormant for a year as LTHs take their place and short-term holding (STH) supply declines. Approximately 70.35% of the BTC supply – 13.65 million BTC – has not been entered or moved in the past year, indicating a stronger LTH base and a decrease in speculative trading.

The new all-time highs are in line with the current Bitcoin momentum, which sits at an all-time low of 15.78. In contrast, the ratio reached 80 during the last bear market cycle. The speedometer measures how frequently BTC is traded or traded.

As the market moves higher, Bitcoin's momentum is expected to continue its downward trend until the underlying digital asset begins to approach its previous all-time highs.

“It is expected that as the price of Bitcoin increases, the velocity will start to increase and the amount of dormant Bitcoin will decrease. This change occurs as long-term holders start selling their holdings, turning their ‘paper profits' into real profits.