The amount of circulating bitcoin that is in profit hit a high of over 83% this week, the highest level since November 2021 when the world's largest cryptocurrency by market capitalization reached its all-time high, according to Monday's Bitfinex Alpha report.

The multi-year high was also confirmed by Glassnode data.

"With bitcoin trading at yearly highs above $37,000 last week, over 83% of the coin supply was driven back into profitable territory," Glassnode posted on X.com. However, the blockchain analysis firm added that "the magnitude of unrealized profit remains modest, and is not yet sufficient for long-term investors to divest."

According the Bitfinex, over 16.3 million bitcoin are currently in profit.

"The current percentage of bitcoin held in profit is substantially higher than the all-time average of 74%," Bitfinex analysts said. The report added that this indicates the market is in a relatively strong position, "with a large majority of bitcoin holders seeing positive returns on their investment."

Recent data from The Block's dashboard also signaled the increased strength of the bitcoin market. For three days last week, the 7-day moving average of total transactions fees on the Ethereum and Bitcoin networks flipped in favor of BTC +0.77% for the first time since November 2020.

Long-term holders are accumulating

Bitfinex analysts said approximately 70% of the total circulating supply of bitcoin has not moved in the past year. This marks a new all-time high, according to the report.

"This is providing a source of upward pressure as increasing demand chases limited supply," the analysts added.

In a note sent to The Block, Bitfinex analysts saw contrasting behavior between the current dynamics of long-term holders and those observed in past cycles.

"In the current cycle, there have been fewer dips and oscillations in long-term holder supply due to spending, indicating a trend of continuously increasing supply. This suggests a degree of supply tightness in the bitcoin market regardless of long-term holder profitability on a pretty decent scale," the analysts said.

The Bitfinex analysts concluded their report by saying present conditions support the thesis that the market is in the early stages of a bull market.

"Bitcoin continues to show strength while still in a range for the time being," the Bitfinex analysts added. It was trading at $37,093 at 12:40 p.m. ET, according to The Block data.