Profitable Supply

Definition ∞ Profitable supply refers to the portion of a digital asset’s total circulating supply that was acquired at a price lower than its current market value. This metric indicates the amount of an asset held by investors who are currently in a state of unrealized profit. A large profitable supply can suggest potential selling pressure if these holders decide to realize their gains. It offers insight into the overall market sentiment and investor psychology.
Context ∞ The discourse on profitable supply often focuses on its role as an indicator for potential market corrections or sustained upward trends in digital asset prices. Analysts monitor changes in this metric to gauge the likelihood of significant selling events. A critical future development to watch for is how this supply reacts to various market catalysts, such as new regulatory announcements or technological advancements.