Bitcoin Market Insights

BTC’s Daily On-Chain Transaction Volume in Profit

Bitcoin’s (BTC) daily on-chain transaction volume in profit sheds light on investor behavior during price fluctuations.

Bitcoin’s Supply in Loss

Bitcoin’s supply in loss (%) provides critical insights into market sentiment and price trends.

In early 2022, the supply in loss peaked at 21.9% as Bitcoin fell below $20K, showcasing intense selling pressure during a bearish market phase.

As the price oscillated between $20K and $30K throughout 2022 and 2023, the supply in loss stabilized between 10-15%, indicating persistent though reduced selling pressure.

By mid-2024, as Bitcoin surged toward $70K, the supply in loss steadily decreased, dropping below 5% by early 2025 when the price reached $94K. This downward trend implied declining selling pressure, with fewer holders suffering losses. The correlation between the shrinking supply in loss and rising prices indicated growing investor confidence.

As more market participants held their assets in anticipation of further gains, the likelihood of panic selling diminished, bolstering a bullish outlook for 2025.

BTC’s Daily On-Chain Transaction Volume in Profit

In early 2024, with BTC at around $60K, profit-taking was minimal, suggesting cautious market sentiment. As Bitcoin rose to $87K by late 2024, transaction volume in profit spiked, indicating increased profit realization as investors capitalized on the rally.

However, by early 2025, with Bitcoin correcting to $77K, transaction volume in profit decreased, indicating fewer holders were actively selling, aligning with the declining supply in loss. Therefore, profit-taking was selective rather than mass liquidations, enhancing price stability.

This trend reinforced that confidence in BTC’s long-term value remained robust even amidst short-term corrections.

Market Stability or Instability?

The BTC liquidation heatmap on Binance offers insights into leveraged positions and overall market stability. High liquidation zones around $60K-$70K in mid-2024 indicated excessive leverage, leading to forced sell-offs during periods of price volatility.

As Bitcoin rallied to $87K by late 2024, liquidation levels dropped, suggesting more balanced leverage among traders. In early 2025, as Bitcoin consolidated around $77K, liquidation activity remained low, corresponding with the declining supply in loss, as fewer underwater positions led to reduced forced liquidations.

This lower liquidation risk fostered a more stable market, enabling Bitcoin’s price action to be driven by genuine demand rather than excess leverage.

Consequently, as BTC adoption grows and institutional interest strengthens, market participants may witness continued price appreciation fueled by long-term confidence over short-term speculation.