Indicator Overview

The indicator calculates the current absolute amount of the circulating supply (measured in coins) that is currently sitting in an unrealised profit. This is determined by summing all coins whose current price is greater than their last on-chain acquisition price. The metric uses a 7-day smoothing mechanism for trend clarity. Increasing values suggest a larger total volume of coins across the entire market is profitable, potentially indicating deep market appreciation and widespread wealth accumulation. Conversely, low values reveal that a minimal amount of the circulating supply holds an unrealised profit, often correlating with deep capitulation.

How To Use

This indicator tracks the aggregate supply conviction and the potential for selling pressure across the entire market. Historically high readings (most of the circulating supply in profit) signal maximum aggregate wealth for all investors. This can precede major tops, as the incentive for all holders to distribute their profitable coins into market euphoria increases, leading to significant selling pressure. Conversely, when readings are low, it means a minimal portion of the supply is in profit. This occurs after a major price crash and suggests that the coins still being held are likely by those with the highest conviction, aligning with cycle bottoms and low-risk accumulation zones.