Crypto analytics firm Santiment reports that over 80% of the supply of three major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and XRP (XRP)—is currently in profit. This indicates a strong potential for selling pressure in the market.
Santiment’s “Profitable Supply” metric shows the percentage of coins or tokens that are in profit compared to the last time they moved. This profitability percentage can sometimes correlate with price trends.
Recent data collected by Santiment reveals that 83% of Bitcoin’s supply, 84% of Ethereum’s, and 81% of XRP’s are in profit, surpassing their average profit supply percentages which typically range between 55% and 75%. This suggests these cryptocurrencies are in a high-risk profit zone.
Santiment notes that these cryptocurrencies last reached such levels in March 2022, indicating they are currently at historically high-risk profit levels compared to their average ranges since 2018.
Despite the potential for price increases due to positive developments in the sector, including the potential approval of a spot Bitcoin ETF in the US, Santiment advises that a lower percentage of supply in profit would be a more robust indicator of sustained growth for cryptocurrencies.
