With the bull run still early, an analysis from Glassnode has shown that about 94.5% of the Bitcoin supply is now in profit. This notable development occurred as Bitcoin blew past $52,000 earlier in the week.
The percentage represented the portion of the asset in circulation where its holder’s entry price was lower than the current market price. This means that out of the 19,631,306.25 BTCs in circulation, holders of about 18,55,584.17 BTCs are basking in profit.
Holding on Despite Gains
Bitcoin holders are not looking to sell soon despite the surging profit percentage. A report shows that the amount of Bitcoin on exchanges is reducing drastically as the asset approaches its all-time high of $69,000.
Instead of a dump, products like spot Bitcoin exchange-traded funds (ETFs) have continued to purchase more bitcoins daily. Notably, ETFs now hold over 258,770 BTCs with just 27 trading days.
Price Top?
Historically, a price profit percentage of 95% usually signifies the asset has peaked. This was seen in the last bull run when Bitcoin hit $69,000.
However, there are lots of events suggesting a bullish continuation for Bitcoin. The halving event, usually known for producing new highs, is still set for April. Also, the increasing inflow from ETF products means that demand is still on; hence, a consequent price uptrend is expected.
