TLDR
- Nearly 97% of the total Bitcoin supply is currently in profit, according to Glassnode.
- The recent Bitcoin rally pushed prices to a new all-time high before retreating slightly.
- Glassnode stated that profit-taking has been gradual, which reflects a healthy and stable market trend.
- The analytics firm identified strong structural support for Bitcoin between $117,000 and $121,000.
- Rising leverage and increased call positioning may cause short-term market fragility.
Nearly all of Bitcoin’s supply remains in profit after its recent rally, but onchain signs suggest rising near-term risks. Blockchain analytics firm Glassnode reported that 97% of Bitcoin supply now holds unrealized gains. However, increasing leverage and call-heavy positioning hint at potential short-term instability.
Bitcoin Hits New High as Majority Supply Turns Profitable
Bitcoin reached a record high this week, pushing most holders into profitable territory, according to data from Glassnode. The analytics firm noted,
“Bitcoin’s rally to a new all-time high has lifted nearly all circulating supply back into profit.”
Analysts described this as part of a maturing trend built on substantial accumulation.
Despite widespread profitability, investors are not rushing to exit the market in panic. Profit-taking remains steady and controlled, which shows market participants are rotating rather than offloading. This balanced flow is typical of strong bull markets supported by persistent demand.
Glassnode used a “Cost Basis Distribution Heatmap” to show Bitcoin’s key support levels. Analysts highlighted $120,000 to $121,000 as near-term support, with a stronger demand zone at $117,000. Around 190,000 Bitcoin were last acquired near that lower level, creating a cushion for price dips.
Leverage, Funding Rates Raise Fragility Concerns
Rising market leverage is triggering fresh caution among analysts despite Bitcoin’s bullish momentum. Glassnode warned that “crowded call positioning” and elevated funding rates could expose Bitcoin to volatility. Price discovery often involves rapid movements, which can lead to short-term exhaustion.
Strong institutional flows support Bitcoin, but leverage resets may interrupt its trend. Analysts observed growing volumes in Bitcoin futures and spot ETFs. This confirms institutional interest but also increases fragility if prices suddenly reverse.
CoinGlass reported over $2.5 billion in inflows to U.S.-based spot Bitcoin ETFs in three days. This included the second-largest daily inflow since inception. However, higher exposure also magnifies downside risk during unexpected pullbacks.
Glassnode concluded that Bitcoin’s trend remains “robust yet maturing,” with strong structural support beneath current prices. Analysts suggested any pullback toward $117,000 could attract renewed interest from recent buyers. This zone acts as a critical level for stabilization and possible momentum recovery.
