Crypto analytics firm Santiment says that three of the largest crypto networks by market cap now have more than 80% of their existing supplies in profit.
The Total Supply in Profit metric measures what percentage of coins are currently in profit compared to the last time they moved, and sometimes correlates with price trends.
According to Santiment, Bitcoin (BTC), Ethereum (ETH) and XRP have 83%, 84% and 81% of their supplies in profit, surpassing their average that range between 55% and 75% and placing these coins in high-risk profit territory.
Santiment says the assets last hit this level in March 2022.
“Bitcoin (83%), Ethereum (84%), and XRP Ledger (81%) have their respective supplies in historically high risk profit levels compared to their averages that hover in the 55%-75% range dating back to 2018.”
Santiment says cryptocurrency prices can still go up because of positive developments in the industry, including the approval of a spot Bitcoin exchange-traded fund (ETF) in the US, but the firm says a lower percentage of the supplies in profit would be a bullish indicator for the crypto assets.
“Crypto can absolutely still climb due to more exposure from ETFs and other positive news. But ideally, a great signal to watch that would imply continued long-term growth would be a breach below 75% of their supplies in profit once again.”
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The post Bitcoin, Ethereum and XRP Sitting at ‘High-Risk’ Profit Levels, Warns Crypto Analytics Firm Santiment appeared first on The Daily Hodl.