Bitcoin and Ethereum lead supply in profit percentages.
Bitcoin’s positive Coinbase Premium Index, tempered retail sentiment signal stability.
The cryptocurrency market is currently in a consolidation phase, with Bitcoin trading at $71,377, experiencing a modest 0.77% price surge, while Ethereum has seen a 0.69% decrease, bringing its value to $3,824. This period of market stability is marked by the absence of significant gains among the top 50 coins by market capitalization.
Meanwhile, in a positive aspect, a recent report by Santiment has drawn the crypto community’s attention, highlighting the “Supply in Profit” metric. This metric measures the percentage of a token’s supply that is currently valued higher than when it first appeared on the blockchain. According to Santiment, Bitcoin leads with 98.3% of its supply in profit. Followed by Ethereum at 95.1%, Chainlink at 86.8%, Dogecoin at 82.2%, XRP at 78.8%, and Cardano at 53.5%.
Supply in Profit is calculated by summing a token's value vs. its value when it first originated on the blockchain. The percentage of top assets' supply in profit is: Bitcoin: 98.3% Ethereum: 95.1% Chainlink: 86.8% Dogecoin: 82.2% XRP: 78.8% Cardano: 53.5% pic.twitter.com/ptaZVBSr41
— Santiment (@santimentfeed) June 6, 2024
In another development, Bitcoin’s Coinbase Premium Index (CPI), which tracks the difference in price between Bitcoin on Coinbase. And also on other exchanges, it has turned positive. This shift comes after ten consecutive days of negative values, as reported by a pseudonymous CryptoQuant analyst. A positive CPI is often seen as a bullish signal, indicating increased buying pressure on Coinbase, typically from institutional investors.
Can Bullish Rally Be Expected?
Another Santiment’s recent analysis suggests that Bitcoin’s price surpassing the $70,000 mark is no longer generating the same level of excitement among traders as it did three months ago. The data indicates a decrease in Fear of Missing Out (FOMO), which could be beneficial for the market. The absence of extreme crowd euphoria often seen during previous price tops may allow Bitcoin and other cryptocurrencies to achieve more sustainable growth.
These insights reflect a maturing market where the psychological drivers of price movements are evolving. As Bitcoin and Ethereum navigate this consolidation phase, the broader implications for the market suggest a potential for more stable and measured growth. It which is driven by institutional participation and a tempered retail sentiment.
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