Bitcoin Hits New All-Time High At $118,000, Institutional Interest Drives Stability

Bitcoin has reached a new all-time high, surpassing $118,000, according to recent analysis. Despite this significant milestone, the Net Unrealized Profit/Loss (NUPL) for long-term holders remains below the euphoria zone, currently at 0.69. This indicates a mature market response, as holders are maintaining stability amidst significant price gains. In previous cycles, high euphoria occurred over lengthy 228-day spans, unlike the current restrained 30-day euphoria seen in 2024–2025.

Market data shows a stable BTC price range between $100K and $110K over recent months, reflecting steadfast demand. Institutional interest has provided notable support, counteracting typical market volatility. Long-term holders are showing a cautious approach, reducing potential profit-taking scenarios. Their supply has reached a new peak, improving market stability while resisting the speculative urge to sell prematurely.

Historical trends show reduced extreme profit-taking, serving as evidence of a more mature investor base in the current market. Expert reviews of the data highlight the comprehensive documentation of Bitcoin holding patterns, forming the basis for predictions that advocate continued stable growth alongside institutional investments.

Another key metric, the MVRV Z-Score, also supports the view that the market sentiment among long-term holders remains below the euphoria threshold. After Bitcoin's recent highs, the MVRV Z-Score remained near 2.4, well below the euphoria threshold of 7. This metric compares the market capitalization of Bitcoin to its realized capitalization, providing insights into whether the asset is overvalued or undervalued. The current level indicates that Bitcoin is not yet in a state of overvaluation, leaving room for further price appreciation.

The institutional investment landscape has also played a significant role in Bitcoin's recent surge. Institutional investors, driven by optimism surrounding crypto policies and the potential for regulatory clarity, have been fueling the rally. This institutional interest has been a key driver of Bitcoin's price, as large investors continue to accumulate the asset, reducing the supply available on exchanges.

The funding rates for Bitcoin remain around neutral, indicating that there is no significant leverage or speculative activity driving the price. This neutral position suggests that the current price movement is more likely to be driven by fundamental factors rather than short-term speculation. The lack of extreme funding rates also reduces the risk of a sudden market correction, as there is less leverage to unwind.

In summary, while Bitcoin has hit a new all-time high, the market sentiment among long-term holders remains below the euphoria threshold. Key metrics such as the NUPL and MVRV Z-Score indicate that there is still potential for further growth. Institutional investment and neutral funding rates further support the idea that the current price movement is driven by fundamental factors, reducing the risk of a sudden correction. As the market continues to evolve, it will be important to monitor these metrics and the broader macroeconomic environment to gauge the potential for further price appreciation.