Bitcoin, the world’s oldest and largest cryptocurrency by market capitalization, is currently struggling to make a profit amid the global economic slowdown. A new Glassnode report has said that long-term holders (LTHs) of this virtual asset also currently own 90 percent of BTC’s total supply in profits. According to CoinMarketCap, Bitcoin currently has a circulating supply of 19,061,762 coins. The Glassnode report also said that long-term holders’ dominance over Bitcoin’s circulation has increased in recent times.
In recent weeks, the percentage of BTC’s supply with profits held by LTHs crossed the 90 percent mark.
The term “supply in profit” refers to the total number of Bitcoins holding profits in the BTC market. The metric is calculated by checking the on-chain history of each BTC token to see what price it was last sold at.
If the current price of a BTC token exceeds the purchase price, it is recognized that the coin has made some profit.
Currently, short-term BTC holders (STHs) only have ten percent of BTC’s supply in their wallets.
The Glassnode report says that BTC’s STHs are at the peak of their pain level right now because they don’t hold “unrealized gains.”
Bitcoin dominance, a measure of the ratio between its market cap and the rest of the cryptocurrency markets, has reportedly risen to a seven-month high of more than 44 percent, even as its price has fallen.
At the time of writing, BTC was trading at $31,879 (about Rs. 24 lakh) according to the Gadgets 360 crypto price tracker.
Besides being seen as an investment tool, other use cases of BTC are also discussed in the industrial market.
For example, in March, financial services firm Deloitte conducted a new study showing how Bitcoin can be used to create a cheaper, safer and faster ecosystem for fiat digital currency or more specifically Central Bank Digital Currency or CBDC.