Bitcoin Surges 40% In Six Weeks, Hits $107,000 Mark

Bitcoin has surged past the $107,000 mark, indicating a robust buying trend as the market consolidates just below its all-time high. This rally, which has seen Bitcoin trading around 40% higher than six weeks ago, has set a new record with the latest weekly close at $106,500. However, the cryptocurrency has been trading within a range of $102,000 to $105,000 for the past two weeks, suggesting a period of consolidation.

Investor profitability has significantly improved, with Short-Term Holders (STHs) experiencing a financial recovery. According to the report, 71% more of their supply is now in profit compared to the previous month, marking the second-largest profitability uptick for this cohort on record. This shift is reflected in the Market Value to Realized Value (MVRV) ratios, which show a similar rebound. The overall Bitcoin MVRV ratio rose from 1.74 to 2.33, equating to an increase in unrealized gains from 74% to 133%. The STH MVRV shifted from 0.82 to 1.13, moving from an unrealized loss of 18% to a 13% gain. Long-term holders (LTHs) saw their MVRV increase from 2.91 to 3.30, changing from 191% to 230% in unrealized gains. These metrics signal widespread portfolio improvements, which are associated with elevated investor confidence.

As portfolios recover, many investors are securing gains. Over the past 30 days, STHs realized $11.4 billion in profit, up from $1.2 billion in the previous 30-day period. Daily realized profits peaked at $747 million as Bitcoin decisively surpassed the STH cost basis of $93,000. The report noted a spike in the STH Realized Profit/Loss Ratio, now exceeding levels seen on 92% of prior trading days. Historically, elevated readings occur during bullish market phases or as rallies approach exhaustion. However, the current Sell-Side Risk Ratio remains well below peak levels, indicating that profit-taking is not yet overwhelming new demand. This metric measures whether holders are locking in significant gains or losses. These indicators complement Bitcoin’s Realized Cap, which has reached a record high of over $900 billion, with a 4.2% increase over the past month. The metric aggregates the total capital stored in the network based on the price at which investors moved each coin last. This steady accumulation signals that the market is absorbing profit-taking without major dislocation.

Glassnode concludes that Bitcoin is experiencing improved investor conditions, with meaningful capital inflows, reduced unrealized losses, and profit-taking activity indicative of a healthy bull market phase. The market's ability to absorb profit-taking without significant disruption suggests a strong underlying demand and investor confidence in the long-term prospects of Bitcoin.