Trying to understand the difference between UTXO in profit and supply in profit from glassnode.com and hoping someone can offer clarification.
Definitions from glassnode.com
UTXO in Profit – The number of unspent transaction outputs whose price at creation time was lower than the current price.
Total Supply in Profit – The circulating supply in profit, i.e. the amount of coins whose price at the time they last moved was lower than the current price
The UTXO metric makes sense to me. The timestamp of creation for each UTXO is available. You can get the price at that timestamp and compare to the current price…above (loss) or below (profit).
The total supply metric is hanging me up in two areas…I don't know exactly what the mean by "move". Does that mean when the UTXO was transacted and subsequently destroyed, a UTXO can only be spent once to prevent double spend right? When you "move" a BTC you really create a new UTXO for the receiver and a second UTXO if the sender is due change. I don't understand describing that as "move".
And "supply" in this context of comparing to UTXO is unclear to me. I get that total supply is ~18.5m BTC mined and circulating. But how are you tracking whether a BTC is in profit or not when BTC are often carved up by the UTXO processing? If I mined a BTC and spent multiple portions of it over 10 transactions…that BTC doesn't really exist anymore…because it's UTXO doesn't exist.
I hope that is clear. Any help would be appreciated.