Almost the entire Bitcoin market is now in profit, driven by a rally that has propelled prices to all-time highs. Recent blockchain data shows that the majority of tokens in circulation today are worth more than their original purchase price, a clear sign of widespread profitability and optimistic sentiment among investors.
In brief
- 97% of the circulating supply of Bitcoin is now valued above its initial purchase price.
- Despite these widespread gains, the profits made remain limited, a sign that investors are holding on to their positions.
Widespread profitability on the Bitcoin supply
On-chain analytics firm Glassnode reported in its weekly update on October 8 that 97% of the circulating bitcoin supply is currently profitable. This progression coincides with the crossing of the threshold of $126,000, a new historical record which places almost all holders in gain.
Despite these high levels of profitability, the profits made remain modest: investors are not rushing to sell. This suggests a stable and orderly rotating market without excessive selling pressure. Glassnode points out: “Overall, sales remain subdued, consistent with a healthy bullish phase, although continued monitoring remains necessary as prices advance. »
The firm also identified price zones where investors will likely defend their positions. According to the cost distribution heat map, weak support appears between $120,000 and $121,000where few tokens were purchased, which could weaken price stability at this level.
On the other hand, a solid price base is around $117,000, where almost 190,000 BTC was acquired previously.
If Bitcoin were to pull back towards this level, previous buyers could return to protect their gains, making the $117,000 area a key support level and a potential recovery point in the event of a correction.
ETF Flows Drive Demand
Glassnode attributes Bitcoin's recent surge to a sharp rise in inflows into spot BTC ETFs in the United States. These products, which directly hold Bitcoin, are experiencing a marked resurgence of interest from both institutional and individual investors.
Data from Farside Investors indicates that more than $2.5 billion flowed into US spot BTC ETFs this week. These continued inflows fuel demand and put upward pressure on the price.
The rise of ETFs has also energized the entire cash market.
- Trading volumes there have risen sharply, reaching their highest level since April, as the influx of capital into ETFs attracts an increasing number of participants to direct Bitcoin trading.
- This increased activity also spilled over into the futures market, where open interest reached new highs after crossing the $120,000 threshold. This reflects increased confidence and more assertive speculative positions.
- At the same time, funding rates have exceeded 8% annualized, a sign of increased appetite for leveraged long positions, with traders banking on a further rise.
Overall, Glassnode indicators depict a solid but now more noticeable uptrend. Demand remains strong, supported by significant flows into ETFs and increased participation in both cash and derivatives markets. The widespread profitability of Bitcoin supply illustrates investor confidence and continued strong buying interest.
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