Bitcoin (BTC) Profitability Rises as Market Shifts to Positive Territory

Bitcoin is continuously capturing market attention as bullish momentum builds. With BTC's price maintaining an upward performance

The crypto market has seen a shift towards positive territory, and Bitcoin, the largest digital asset, has maintained a bullish stance during this period, igniting hopes of a continued bull market phase.

Following the renewed upward trend, several factors of BTC’s market dynamics are beginning to see positive results, such as the overall supply in profit.

As bullish momentum builds, Bitcoin has been consistently capturing market attention. With BTC’s price exhibiting an upward performance, on-chain expert and host of the Crypto Banter show, Kyle Doops, has highlighted a notable shift in its market dynamics.

Specifically, Doops reports that the percentage of BTC’s overall supply held in profit has seen an increase, which is a classic precursor to heightened investor enthusiasm.

Historically, momentum accelerates, and prices often reach parabolic levels when a majority of Bitcoin holders are sitting on gains.

According to Doops, the percentage of supply in profit has rebounded to 87.3% from the March lows as BTC pushed to the $94,300 (BTC) level. To put this into perspective, 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, Doops is confident that sustained profitability above 90% might spark the “next true euphoria phase,” if history is to be believed.

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 as it signals sustained demand from new traders and trend-following players.

It seems like the bulk of the selling pressure was seen in March and April, when BTC dropped to lower prices. Afterwards, new buyers entered the market with strong conviction, which is pushing the market higher.”

The strong interest from these three cohorts is a testament to the durability of the recent rally. However, as the bear market was quite brutal, it is understandable that profit-takers are still cautious.

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 24 hours.