Millions Of Bitcoins Return To Profit As Bitcoin Price Surges Above $99k

Bitcoin has once again taken center stage in the crypto market. Following a market resurgence, the flagship asset rebounded above the $99,000 mark.

Bitcoin (BTC) has once again taken center stage in the crypto market. Following a market resurgence, the flagship asset rebounded above the $99,000 mark. During the sudden price recovery, a significant portion of BTC moved back into profit territory.

Millions Of Bitcoins Return To Profit

As the cryptocurrency clocks crucial resistance levels, financial and on-chain data platform Glassnode has noted that a huge portion of Bitcoin has returned to profit.

At the time of writing, Bitcoin had gained momentum as its price rose to $97,900, the highest level in the past two months. The data shows that more than 3 million BTC have now returned to the profit zone, following the price recovery, which provided some relief for market participants.

The return of previously underwater BTC to profit is likely to boost investor confidence and strengthen market sentiment about the sustainability of the recent rally.

Moreover, this development could set the stage for a potential sustained upside move to crucial levels like the $100,000 mark.

Presently, the percentage of Bitcoin’s overall supply in profit has increased to 88%, with losses previously concentrated among buyers from the $95,000 and $100,000 range. This positive development in supply profitability indicates an approaching euphoria phase.

After examining the supply profit oscillator, Glassnode noted that the metric had bounced back from its long-term mean, suggesting a broader resetting of investor expectations without a widespread surrender.

If the percentage of supply in profit continues to increase, it might spark a major rally for BTC as investors’ engagement rises in anticipation of the upsurge.

Therefore, the ongoing upward move above the $99,000 threshold could be part of a larger trend.

Short-Term BTC Holders Selling Despite Profitability

While a significant amount of BTC returning to profit is said to spur investor confidence, the same cannot be said for short-term holders.

Alphractal, an advanced on-chain data platform, noted a surprising trend among these investors even as the recent rebound pushes short-term holders back into profit.

According to the on-chain platform, short-term holders’ cost basis has been hit, but they are persistently distributing their coins.

Surprisingly, this growing selling pressure is due to their return to profitability, hinting at a potential short-term pullback.

Alphractal stated that the STH Realized Price is currently at $93,400, and Bitcoin should ideally maintain this level in the near future to prevent a fresh selling wave.

Meanwhile, this area serves as a strong base against pullbacks, and short-term holders will likely do everything they can to keep it.

At the time of writing, BTC is trading at $99,700, demonstrating a nearly 4% rise in the past week. Trading volume has also increased sharply alongside price. CoinMarketCap data shows a more than 60% rise in trading volume in the past day, reflecting bullish conviction.