Bitcoin, Ethereum and XRP hit peak profitability in ongoing cycle amidst altcoin season
- Bitcoin, Ethereum and XRP supplies have hit historically high-risk profit levels compared to their averages from 2018.
- Santiment analysts believe these asset prices can climb higher due to exposure from ETFs and other positive developments.
- A breach below 75% of the asset’s supplies in profit could ensure long-term price growth in BTC, ETH and XRP.
Bitcoin price sustained below the $43,000 level despite historically high-risk profit levels, as seen on Santiment. Analysts at the on-chain data intelligence tracker note that once the level of supply in profit (currently above 80%) declines below the 75% mark, it is likely that the asset prices continue climbing.
Also read: Bitcoin price drops 8% in one week, BTC halving event draws close
Bitcoin, Ethereum and XRP supplies climb to record high-profit levels
Bitcoin, Ethereum and XRP’s 83%, 84% and 81% supply is currently profitable, according to Santiment data. These numbers put the three assets in the high-risk profitability zone, as seen in the chart below. The averages for the three assets have been typically in the 55-75% range over the past five years.
Analysts at Santiment believe there is room for BTC, ETH and XRP prices to climb higher. Experts argue that these assets have potential for long-term growth amidst positive development
Bitcoin, Ethereum and XRP Ledger. Source: Santiment
In the past two weeks, the approval of Spot Bitcoin ETF, news of leveraged ETF filing by issuer ProShares and the rise in Ethereum price against Bitcoin, have fueled optimism among traders. Experts believe that once the percentage of total supply in profit declines below the 75% range, it can be considered a signal of long-term growth.
The speculation surrounding XRP ETF is another factor likely to influence sentiment among market participants and impact the profitability of BTC, ETH and XRP supply. At the time of writing, Bitcoin price is $42,424, ETH is trading at $2,511.71 and XRP is exchanging hands at $0.5617.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
