Bitcoin News Today: Bitcoin Market Remains in Profit as Supply Tightens and Volatility Coils

A significant shift in Bitcoin’s market dynamics has emerged as 97% of its circulating supply remains in profit, according to a recent analysis by Glassnode [1]. This high percentage reflects a maturing and increasingly liquid market, with over $1.4 trillion in unrealized gains held by investors. Despite a major sell-side event—80,000 BTC, valued at $9.6 billion, distributed via Galaxy Digital’s OTC desk over the weekend—the price only briefly dipped to $115,000 before recovering to $119,000. The market’s ability to absorb such large volumes without a collapse signals strong underlying demand and confidence among long-term holders.

Illia Otychenko, lead analyst at CEX.IO, noted that Bitcoin appears to be “coiling like a spring,” with volatility compressed and a potential breakout on the horizon [1]. The Choppiness Index has hit its highest level since early 2024, a historical precursor to sharp price movements. The current trading range of $115,000 to $120,000 aligns with supply concentration zones, which also overlap with short-term holders’ average cost basis. This dual significance reinforces the level as a potential turning point for both support and decision-making.

Further evidence of tightening supply conditions includes a 14% drop in Bitcoin’s exchange reserves and a 24% decline in OTC balances in 2025, marking the steepest annual drawdown in Bitcoin’s history [1]. Despite these record outflows, the price has only risen 26% year-to-date, suggesting a delayed market reaction that could precede a more substantial upward move. Glassnode’s data supports this, noting that elevated unrealized profit levels often precede, but do not immediately trigger, profit-taking events. In prior cycles, markets have continued to rise for weeks after such events begin, indicating Bitcoin’s bullish momentum may still have room to extend.

Long-term holders, who control 53% of the circulating supply, continue to exhibit strong retention even after record distributions [1]. This concentration implies that significant portions of Bitcoin remain locked in, likely to enter the market only at higher price levels. Analysts highlight key support levels forming around the 20-day EMA and the $110,000–$117,000 range, which are critical for near-term stability.

Should Bitcoin break above its $125,000 resistance level, the $141,000 region could become the next major test, where intensified profit-taking is expected based on historical patterns [1]. The market’s current structure and liquidity suggest that while short-term volatility remains, the fundamentals remain robust, with a strong likelihood of further upside as supply constraints tighten and demand remains resilient.

Source: [1] 97% of Bitcoin Wallets Are Now In Profit — What Does It Mean For Your Portfolio? (https://www.benzinga.com/crypto/cryptocurrency/25/07/46753720/97-of-bitcoin-wallets-are-now-in-profit-what-does-it-mean-for-your-portfolio?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)