icon
icon
icon
icon
$300 Off
$300 Off

News /

Articles /

Bitcoin: 88% of Holders Profitable Below $95,000, Market Sentiment Bullish

Coin WorldMonday, May 5, 2025 1:49 pm ET
2min read

The latest data from Glassnode indicates a significant shift in Bitcoin (BTC) supply dynamics, with 88% of holders now in profit below the $95,000 mark, reshaping market expectations. As BTC hovers around a crucial price range, the implications for both short-term strategies and long-term investments are becoming increasingly clear. According to Bitcoin researcher Axel Adler Jr., the decreased selling pressure from holders suggests a solidifying bullish sentiment in the market.

Recent insights reveal that 88% of Bitcoin’s supply is profitable below the $95,000 threshold, reflecting a pronounced shift in investor sentiment and market dynamics. This rebound from a long-term mean of only 75% marks a critical reset in expectations, as indicated by data from well-regarded analytics firm Glassnode. The supply in profit is particularly concentrated around price levels significantly below prior peaks, notably in the $95,000-$100,000 range.

Ask Aime: What's next for Bitcoin after 88% of supply is in profit below $95k?

Bitcoin’s price recovery indicates a structural transition from previous market behaviors. Earlier this year, in August 2024, Bitcoin retested a profitability mean around $60,000, suggesting that the current price feed, fluctuating between $75,000 and $95,000, could be establishing a new bottom. This reinforces a more stable investment climate as seen during the comparable market conditions in Q3 of 2024.

The total exchange flow to network activity ratio highlights critical changes in holder behavior, confirming diminished selling pressure from long-term holders. Axel Adler Jr. elucidated that the ratio—combining inflows and outflows—has decreased by 1.5 times since hitting Bitcoin’s all-time high, suggesting that most current growth is organic and not driven by excessive trading. This shift in dynamics contrasts sharply with prior peaks characterized by high trading volumes, as indicated by orange bars on the activity chart. The current environment shows little urgency to sell, which strengthens the notion of a stable market and encourages a more bullish outlook.

The high level of profitability among holders, coupled with reduced exchange inflows, points to a more confident mindset among investors. This situation indicates that many do not view Bitcoin as an exit opportunity but as an undervalued asset, aligning with positive trends in market sentiment.

As detailed by Glassnode, the Market Value to Realized Value (MVRV) Ratio has reverted to a long-term mean of 1.74, historically regarded as a support threshold during periods of consolidation. Understanding this adjustment is vital for investors; it signals a cooling off of unrealized gains, potentially laying the groundwork for future bullish growth trajectories. In parallel, the Network Value to Transactions (NVT) ratio has settled at a neutral level of 0.5, suggesting that Bitcoin at a price of $94,400 is now well-balanced—significantly contrasting its overbought condition earlier in the year.

The evolving landscape of current BTC investors reveals a tendency to hold rather than sell, which contrasts sharply with cyclical behaviors in prior market peaks. As profitability remains intact, it appears that a significant portion of the investor cohort is less inclined to liquidate their positions. This prospective decrease in supply alongside steady demand could propel Bitcoin toward a stronger market stance. Additionally, there’s speculation around Bitcoin’s dominance potentially facing challenges as it approaches 71%, reinforcing the notion that market dynamics are continually shifting. Understanding these elements will be essential for stakeholders looking to capitalize on future movements.

The data-driven insights into Bitcoin’s current supply and profitability patterns underscore a transformative period for the cryptocurrency. As 88% of Bitcoin holders enjoy profitability below $95,000, and indicators suggest cooling unrealized gains, the market appears well-positioned for further growth. Investors must remain aware of these trends to navigate effectively through this evolving landscape.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
Gejdhd
05/05
MVRV Ratio back to mean, unrealized gains cooling. Could be setting up for a rally.
0
Reply
User avatar and name identifying the post author
Option_Closeout
05/05
@Gejdhd Do you think we're in for a moonshot?
0
Reply
User avatar and name identifying the post author
BranchDiligent8874
05/05
Less selling pressure, more bullish vibes. Long-term holders know what's up.
0
Reply
User avatar and name identifying the post author
DanielBeuthner
05/05
NVT Ratio neutral, BTC balanced. Not overbought this time, folks.
0
Reply
User avatar and name identifying the post author
Sensitive_Chapter226
05/05
Holding BTC long-term feels solid. MVRV ratio cooling off gains, might see more growth ahead. 📈
0
Reply
User avatar and name identifying the post author
shrinkshooter
05/05
Investors holding tight, not liquidating. Less supply, steady demand = good news.
0
Reply
User avatar and name identifying the post author
realstocknear
05/05
@shrinkshooter What's your take on demand side?
0
Reply
User avatar and name identifying the post author
Super-Implement4739
05/05
I'm HODLing a small stack, diversifying with $AAPL. Cover all bases, y'know?
0
Reply
User avatar and name identifying the post author
yodalr
05/05
88% profit holders = serious bullish vibes
0
Reply
User avatar and name identifying the post author
xX_codgod420_Xx
05/05
NVT Ratio neutral, BTC in balance zone. 🤔
0
Reply
User avatar and name identifying the post author
Nelladeymx
05/05
@xX_codgod420_Xx NVT's neutral, BTC's good.
0
Reply
User avatar and name identifying the post author
Booknerdworm
05/05
Bitcoin dominance near 71%, watch for shifts.
0
Reply
User avatar and name identifying the post author
joe4942
05/05
@Booknerdworm What do you think will happen if BTC dominance drops?
0
Reply
User avatar and name identifying the post author
SqueezeStreet
05/05
@Booknerdworm Agreed, dominance shift could spark moves.
0
Reply
User avatar and name identifying the post author
ExeusV
05/05
Organic growth, low urgency to sell—this isn't a hype peak, imo.
0
Reply
User avatar and name identifying the post author
Particular-Ad-8433
05/05
Market calm, fewer panic sales, good sign.
0
Reply
User avatar and name identifying the post author
charon-the-boatman
05/05
Hodl strategy paying off, BTC looking strong.
0
Reply
User avatar and name identifying the post author
greyenlightenment
05/05
Bitcoin dominance near 71%? Other coins might steal the show soon.
0
Reply
User avatar and name identifying the post author
Smart-Material-4832
05/05
MVRV Ratio cooling, could mean more growth ahead.
0
Reply
User avatar and name identifying the post author
MarshallGrover
05/05
$95k becoming a new support? Market's voting bullish. Time to stack more BTC.
0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App