Analysts: Bitcoin Supply in Profit ratio drops to 53.8%, market remains in a confidence recovery phase

On October 20, crypto analyst Darkfost stated that Bitcoin is currently in a phase of lacking investor confidence. Market profitability is recovering slightly, but remains insufficient to place most holders in a clearly profitable position and drive prices higher.

Data indicates that after excluding BTC held for over 10 years, approximately 53.8% of the current supply is in profit, down from a previous brief peak above 60%. Darkfost believes that fluctuating around the neutral 50% benchmark is a normal occurrence.

It notes that at the end of a bear market, the proportion of supply in profit typically experiences a gradual recovery from below 40% during capitulation phases and requires time to firmly stabilize above 50%. The market needs to rebuild investor confidence and attract new demand through sustained performance, and until then, further stabilization of holding behavior is still required.