On-chain data shows that Bitcoin investors are currently making an average of 121% in profits. Here’s whether that was enough to get you to the top in the past.

Bitcoin’s yield index is currently around 221%

In the modern one post on X, CryptoQuant author Axel Adler Jr discussed the latest trend in the Bitcoin Average Yield Index. The “Average Yield Index” is an indicator for BTC that compares the spot value of an asset to its realized price.

“Realized price” here refers to a measure of the cost basis or acquisition value of the average investor in the Bitcoin market. The value of this metric is determined by on-chain data, with the last price at which each coin in circulation on the blockchain was traded as the current cost basis.

When the Average Yield Index is greater than 100%, it means that the cryptocurrency’s spot price is currently higher than its realized price. This trend suggests that the average investor maintains the amount of net profit.

On the other hand, a ratio below this threshold means that the BTC market as a whole is trading for coins with an unrealized net loss. Naturally, if the index is exactly 100%, it means that the index holders as a whole are breaking even on their investment.

Here is a chart showing the trend of Bitcoin’s average yield rate over the last decade:

As you can see in the chart above, Bitcoin’s average yield index has recently seen a significant augment as the price of the cryptocurrency surges to a modern all-time high (ATH).

The ratio is currently at around 221%, suggesting that investors are making significant gains. In particular, BTC addresses as a whole have a net yield of 121%.

Generally speaking, the higher the returns that holders achieve, the greater the likelihood that they will be tempted to take profits. The current level of the average yield ratio is high, but it is not certain whether it is high enough for a massive sell-off to become a risk.

On the chart, the analyst marked how high the indicator reached at the highs of the previous bull runs. In 2017 it appears to have peaked at 460% and in 2021 it is at 395%.

So far this cycle, the highest level of the index was 272%, which occurred during the peak in March this year. Given the fact that the indicator has not yet reached this level, let alone the highs of recent cycles, it is possible that Bitcoin still has enough room to grow before a top becomes likely.

BTC price

At the time of writing, Bitcoin is trading at around $76,200, up over 9% over the past week.