Indicator Overview

The indicator calculates the percentage of the total circulating supply that is currently holding an unrealised profit. The metric is expressed as a proportion (0 to 1), with 1 representing 100%. This value is calculated by dividing the volume of profitable coins by the total circulating supply. The calculation incorporates a 7-day smoothing to moderate volatility and highlight the overall trend. High percentages reflect widespread market profitability and euphoria, while low percentages suggest a state of market-wide stress or minimal aggregate gain.

How To Use

This metric tracks the macro-cycle positioning based on the overall profitability of the circulating supply. When the indicator registers historically high percentages (approaching 1), it implies that nearly all circulating coins are sitting on profits, signaling extreme market appreciation and wealth. This typically aligns with the late stages of a bull market where the incentive to distribute supply is maximal, thereby increasing the likelihood of a major peak. Conversely, extremely low readings suggest only a minimal portion of the circulating supply is in profit. This lack of profitability for the vast majority of coins indicates deep market capitulation, often preceding major cyclical bottoms and offering prime opportunities for patient accumulation.