Bitcoin Nears Euphoria Phase as 90% of Supply Turns Profitable—Bulls Eye New ATH

Bitcoin holders are popping virtual champagne as on-chain data shows over 90% of BTC supply is now in profit—a historical precursor to explosive price rallies. The last time this happened? December 2020, just before the infamous 300% parabolic run.

The Profitability Signal

Glassnode’s UTXO Realized Price Distribution (URPD) metric flashes green, revealing only 8.3 million BTC currently held at a loss. Meanwhile, Bitcoin’s Mean Dollar Invested Age (MDIA) hits a 6-month high—proof that diamond hands are getting heavier.

Wall Street’s FOMO Playbook

Institutional inflows into spot BTC ETFs have surged 47% this month, with BlackRock’s IBIT hoarding coins faster than a Boomer buying municipal bonds. The ’supply shock’ narrative gains steam as exchanges report dwindling reserves.

As BTC flirts with $67,000, crypto Twitter oscillates between ’number go up’ memes and existential dread about the coming correction. Because nothing says ’healthy market’ like leverage traders liquidating $300 million in a single candle—amirite?

Market Euphoria Brewing With Bitcoin Profitability Rise

Bitcoin is continuously capturing market attention as bullish momentum builds. With BTC’s price maintaining an upward performance, Kyle Doops, an on-chain expert and host of the Crypto Banter show, has outlined a notable shift in its market dynamics.

Specifically, Kyle Doops reported that the percentage of BTC’s overall supply held in profit has increased alongside the recent price rally, which is a classic precursor to heightened investor excitement. Historically, momentum has accelerated, and prices have frequently reached parabolic territory when most Bitcoin holders are sitting on gains. 

Data shows that the percentage of supply in profit has rebounded to 87.3% from the March lows as BTC pushed to the $94,300 level. It is worth noting that the last time BTC hit about $94,000, just 82.7% of the entire supply was profitable.

This implies that almost 5% of the supply was changed at lower price levels, which is a clear indication of accumulation. A persistent rise in BTC’s profitability could spur demand for the flagship asset among retail and institutional investors in the following days, bolstering the current uptrend.

Since prices tend to go parabolic when most holders are in profit, Bitcoin may be setting the stage for an explosive rally. With sentiment improving and profitability metrics soaring, Kyle Doops is confident that sustained profitability above 90% might spark the “next true euphoria phase,” if history is to be believed.

A Wave Of First And Momentum BTC Buyers

During this period, Glassnode, a leading financial and on-chain data platform, has highlighted waning interest in profit-taking even as BTC’s price grows. After examining the cumulative supply per cohort, Glassnode revealed that first buyers and momentum buyers continue to exhibit high levels of engagement, while profit takers‘ involvement is still mild.

According to the on-chain platform, this is encouraging since it indicates continuous demand from new traders and trend-following players without putting a lot of strain on distribution. The strong conviction among these cohorts further supports the durability of the recent rally.

This shift in investor behavior signals a growing belief in further upside potential. With investors demonstrating bullish sentiment amid a price rise, BTC’s market dynamics may be preparing for a steadier and stable ascent.

At the time of writing, Bitcoin was trading at $94,903, exhibiting an increase of more than 8% in the past week. Investors are heavily betting on a continued price appreciation, as evidenced by a nearly 76% surge in trading volume in the past day.