According to PlanB, a popular Bitcoin analyst and creator of the Stock-to-Flow model, 83% of all Bitcoin in circulation is currently in profit. This means that only 17% of Bitcoin holders are still in loss, mainly those who bought near the 2021 all-time high of around $64,000.
PlanB shared this insight on Twitter, along with a chart that shows the percentage of Bitcoin in profit over time. The chart reveals that Bitcoin’s profitability has been fluctuating between 40% and 100% since its inception, with some notable peaks and valleys corresponding to major market cycles.
83% of all bitcoin is in profit (some 2021 ATH buyers still in loss, everybody else in profit) pic.twitter.com/t6CgOZRupP
— PlanB (@100trillionUSD) November 8, 2023
The chart also shows that Bitcoin’s profitability tends to increase after each halving event, which reduces the supply of new coins by 50% every four years. The last halving occurred in May 2020, and since then, Bitcoin’s profitability has risen from 60% to 83%, despite the recent market correction.
Long-term Bitcoin profitability
PlanB’s Stock-to-Flow model predicts that Bitcoin’s price will continue to rise in the long term, as its scarcity increases and its demand grows.
However, PlanB also acknowledges that his model is not perfect, and that there are many factors that can affect Bitcoin’s price, such as regulation, innovation, adoption, and competition. He advises investors to do their own research and be prepared for volatility.
Bitcoin is the first digital asset that cannot be copied, duplicated, or forged, and has a fixed supply of 21 million coins. It is currently the largest and most dominant cryptocurrency in the market, with a market capitalization of over $1 trillion.