Key Insights:
- Bitcoin news shows over 71% of supply now sits in profit.
- BTC price recovered near $78,600 after a $77,603 intraday low.
- Bitcoin ETFs logged $31.07 million daily and $698.42 million weekly inflows.
Bitcoin news centers on a pivotal profit threshold after more than 71% of Bitcoin supply moved into profit. BTC price recovered near $78,600 on Tuesday after falling to $77,603. It stayed below the $82,000 level reached last week. Glassnode says long-term holder supply explains one-month realized volatility better than market capitalization, open interest, funding rates, or trading activity.
The latest Bitcoin news reveals prior moves above that 71% mark have typically aligned with bear-to-bull transitions. Still, a greater share of profitable coins can deepen potential sell-side liquidity near previous local highs. The signal describes market structure, not a confirmed BTC price breakout.
Bitcoin News Shows How Holder Supply Drives Low Volatility
Glassnode ranked long-term holder supply first among the variables explaining one-month realized volatility. Illiquid supply followed. Liveliness and absolute funding rates came next. Market capitalization ranked much lower.
The finding shifts attention from market size to coin ownership. Long-term holder supply tracks Bitcoin held by entities that resist frequent trading. When more coins stay inactive, fewer units circulate through speculative markets. That can mute short-term price swings during calm conditions. This Bitcoin supply profile helps frame the current volatility backdrop.
Glassnode classifies holder cohorts by the average purchase date for an entity. Its methodology centers the transition near 155 days. This distinguishes older coins from newer, more active holdings.
Profit Supply Nears 74.7% With Bitcoin Trading Near $78,000
Bitfinex says more than 74% of Bitcoin supply now sits in profit. The figure stood near 67% when BTC traded above $82,500 during its May consolidation. The short-term holder cost basis also fell to $68,400 during the summer.
Bitfinex places the historical mean at 74.7%. It says prior moves above it have marked bear-to-bull transitions. Profit supply is not a standalone bullish signal. At equal price levels, more coins now show gains on paper. That creates a deeper pool of potential sellers near former local highs. It may help explain why attempts near $82,000 attract profit-taking.
Bitcoin briefly traded below $78,000 on Tuesday. It reached a daily low of $77,603 before the rebound. The BTC price then recovered near $78,600 by late morning. That swing liquidated $79 million in Bitcoin positions. Total crypto liquidations reached $264 million, including $187 million in longs.
Meanwhile, the price targets and market levels mentioned in this article are based on technical analysis and should not be interpreted as guarantees of future performance. This article is provided for informational purposes only and does not constitute financial advice.
The crypto market is highly volatile, and readers are encouraged to conduct their own research or consult a qualified financial professional before making any investment decisions.
Bitcoin News Tracks ETF Inflows and Inflation Data
Lookonchain reported $31.07 million in daily Bitcoin ETF net inflows. Seven-day inflows reached $698.42 million. Bitfinex also cites continued ETF demand and stablecoin growth as market support.
Crypto capitalization excluding Bitcoin, Ether, and stablecoins has increased by $51.2 billion since September began. That figure sits above mid-August levels, according to Bitfinex. Bitcoin news now turns to whether ETF inflows stay positive through the September 9 Treasury buyback. The August PPI is due Thursday. The August CPI follows Friday, according to the Bureau of Labor Statistics.
The two-year Treasury yield holds above 4.34%, keeping short-term rates in focus. August payrolls increased by 162,000, which exceeded the 53,000 consensus estimate. A hotter inflation reading could bolster the case for tighter policy.
That could weigh on risk assets and restrain a BTC price advance, even with positive fund flows. Bitfinex says steady buying through these events would show investors view policy rates less as a binding constraint.
