Bitcoin Profit and Loss Supply Nears Historical Convergence

Current data from Glassnode reveals that approximately 11.1 million BTC are in a profitable state, meaning their purchase cost is below the current market price, while around 8.9 million BTC are in a loss. According to ChainCatcher, the gap between these figures is narrowing, bringing the Supply in Profit vs Supply in Loss indicator closer to a historically significant convergence range. This metric assesses the number of wallets currently in profit compared to those in loss. Historically, when these figures approach equilibrium, it often signals a market bottom phase, considered an important indicator of market capitulation and long-term investment opportunities. If the profit and loss supply continues to converge, it may suggest the market is entering a typical cycle bottom formation phase. However, this should be evaluated alongside macro liquidity, derivatives structure, and market sentiment factors.