XRP News Today: Bitcoin 94.5% Supply In Profit Leads Crypto Market

According to the latest data from Santiment, a significant portion of the circulating supply of major cryptocurrencies is currently in profit. This metric is based on the average on-chain purchase price, providing a snapshot of investor profitability across different digital assets. Bitcoin (BTC) leads the pack with 94.5% of its supply in profit, followed closely by Ethereum (ETH) at 88.7%. XRP and Dogecoin (DOGE) have 65.1% and 64.7% of their supplies in profit, respectively, while Chainlink (LINK) and Cardano (ADA) trail behind with 59.4% and 46.5% in profit.

Santiment's analysis suggests that the current market sentiment for Bitcoin and Ethereum is extremely bullish, with nearly all investors in these top cryptocurrencies holding unrealized gains. However, this high level of profitability also indicates a potential for short-term profit-taking, as investors may look to realize their gains. This could lead to increased sell pressure in the market, particularly for Bitcoin and Ethereum, which have seen significant rallies in recent months.

In contrast, Cardano (ADA) appears to be lagging behind, with just 46.5% of its supply in profit. This means that more than half of ADA investors are currently at a loss. According to Santiment, this situation can signal potential undervaluation, especially if the network's fundamentals remain strong. Assets where a large portion of the supply is underwater can present opportunities for investors, assuming there are no major structural concerns.

As traders navigate the rising prices and potential overvaluation risks, profit-taking behavior and rotation into lagging altcoins may shape the next phase of the market cycle. The current market dynamics indicate a shift in investor sentiment and capital allocation, with a focus on top cryptocurrencies like Bitcoin, Ethereum, and XRP. This trend is evident in the performance of the altcoin season index, which currently stands at 14, well below the threshold of 75 that would indicate an altcoin season. The index has been below 25 since mid-May, suggesting that Bitcoin's dominance in the market is persisting.

The ongoing market cycle has been characterized by institutional backing for top cryptocurrencies, with investment funds and ETFs attracting substantial inflows. This institutional support has contributed to the profitability of investors in Bitcoin, Ethereum, and XRP. The focus on these top cryptocurrencies has led to a delay or potential end to the cyclical arrival of the altcoin season, as capital is not rotating into alternative tokens as it has in previous cycles.

The current market scenario presents a mixed outlook for altcoins. While some altcoins, such as meme coins and AI agent tokens, have experienced rallies, the overall performance of altcoins has lagged behind that of top cryptocurrencies. The altcoin season index's low value indicates that Bitcoin's gains are dominant, and traders are prioritizing investments in top cryptocurrencies over altcoins. This trend is likely to continue as long as institutional support for top cryptocurrencies remains strong.