Bitcoin, the world’s oldest and largest cryptocurrency by market capitalization is currently struggling to turn a profit amid a global economic downturn. A new report by Glassnode has revealed that longtime holders (LTH) of the virtual asset now also own 90% of the total BTC supply in terms of profits. According to CoinMarketCap, Bitcoin currently has a circulating supply of 19,061,762 coins. The Glassnode report also states that the dominance of long-term holders over Bitcoin’s circulation has increased in recent times.
In recent weeks, the percentage of BTC’s provides profit when owning LTHs has exceeded 90% mark.
The term ‘supply in profit’ refers to the total Bitcoin keep profit on BTC market. The index is calculated by examining the on-chain history of each BTC token to see what price it was last sold at.
If the current price of the BTC token exceeds its buying rate, the coin is recognized as having managed some profit.
At this point, short-term BTC (STH) holders with only 10% of the BTC supply earn a profit in their wallet.
The Glassnode report states that at the moment, BTC STHs are at the top of their difficulty level as they do not own ‘unrealized profits’.
Bitcoin dominance, a measure of the ratio of its market capitalization relative to the rest of the crypto markets, has reported has surged to a seven-month high of more than 44% even as its price has dropped.
At the time of writing, BTC is trading at $31,879 (about Rs 24 lakh) According to Gadgets 360’s Cryptocurrency price tracker.
In addition to being considered an investment tool, other use cases of BTC are also being discussed in the industrial market.
For example, in March, the financial services giant Deloitte company conducted a new study that shows how Bitcoin can be used to create a cheaper, safer and faster ecosystem for digital fiat currencies or more specifically, the Central Bank or CBDC.