Bitcoin’s price rebound has driven the percentage of its supply in profit to 87.3%, sparking hopes for a bull market euphoria. Analysts note increased engagement from new buyers rather than profit-takers, suggesting sustained demand. Currently trading near $94,903, Bitcoin’s momentum could signal a potential for significant upward movement in the near future.
As the cryptocurrency market shifts to a more positive sentiment, Bitcoin, the leading digital currency, is showing signs of renewed bullish momentum. Many investors are now keeping a watchful eye, hopeful that the current trend signals the start of a sustained bull market. Recent developments indicate that Bitcoin’s overall supply in profit has notably risen, prompting speculation about further price increases.
Kyle Doops, a respected on-chain analyst and host of Crypto Banter, highlighted a significant trend during this upturn. He noted that the percentage of Bitcoin’s supply held in profit surged to 87.3%, up from much lower levels earlier this year. This bounce coincided with Bitcoin reaching a price of approximately $94,300. Comparatively, during the last peak near that price, only 82.7% of the supply was experiencing profits.
This increase suggests that roughly 5% of the supply has shifted at lower price points, indicating strong accumulation behaviour among investors. This ongoing rise in Bitcoin’s profitability could trigger greater demand from not just retail traders but also institutional investors, potentially adding momentum to the upwards trend.
Historically, when the majority of Bitcoin holders find themselves in profit, the prices often skyrocket, leading to parabolic market movements. Doops expressed optimism that if Bitcoin maintains profitability above the 90% threshold, it may catalyse what he refers to as the “next true euphoria phase,” echoing patterns observed in past cycles.
Meanwhile, Glassnode, a notable analytics firm, has observed a decrease in profit-taking among investors even as the price rallies. Their analysis of market cohorts indicates that fresh buyers and so-called momentum traders remain active participants in the market, while profit takers have not been overly aggressive.
This trend reflects a robust demand from new entrants and trend-followers without overwhelming the market with distribution pressures. The growing confidence among these investor segments points towards potential for further gains in the near future. Investors seem increasingly bullish, signalling that Bitcoin’s framework may be set for more steady growth.
Currently, Bitcoin’s price stands at around $94,903, marking a notable increase of over 8% within just a week. Trading volumes have seen a massive uptick as well—up nearly 76% in the last day—indicating that many are banking on continued price hikes amid the optimistic market sentiment.
