FameEX Hot Topics | Bitcoin Investor Sentiment Changes as 88% of Supply Is Now in Profit

Bitcoin’s market structure is exhibiting signs of stabilization as 88% of its total supply is now in profit below the $95,000 level, according to Glassnode. This high percentage of profitable supply indicates a significant shift in investor behavior, with losses primarily concentrated among recent buyers in the $95,000–$100,000 range. The rebound from the long-term average of 75% profitability reflects a renewed wave of investor confidence and suggests that the $75,000–$95,000 zone may be forming a structural price floor. This aligns closely with the patterns seen during Q3 2024.

Historically, when Bitcoin’s supply in profit hovered near its long-term average of 75%, it often signaled the end of downturns and the beginning of recovery phases. A key instance occurred in August 2024, when BTC fell to around $60,000 before rebounding. The return to higher profitability percentages today reinforces the idea that the current price range represents consolidation rather than decline. This behavior mirrors past market cycles, where extended periods of accumulation replaced panic selling and speculative exits.

Further reinforcing the stabilization narrative, Bitcoin researcher Axel Adler Jr. noted a 1.5x drop in the total exchange flow to network activity ratio after Bitcoin’s all-time high. This decline indicates cooling speculative activity and a shift toward more organic, sustainable market growth. In contrast to previous bull market peaks, where a high ratio typically suggested mass profit-taking, the current ratio reflects a lack of urgency to sell, contributing to a more stable market environment.

Reduced exchange inflows and sustained profitability also suggest diminished selling pressure from long-term holders. Investors now appear to treat the $75,000–$95,000 price range as a buying zone rather than an exit point. This signals a growing consensus that Bitcoin remains undervalued even amid its recent appreciation, further reinforcing long-term bullish sentiment and holding conviction.

Supporting this outlook, the Market Value to Realized Value (MVRV) Ratio stands at 1.74, a level historically associated with market consolidation and support. Meanwhile, the Network Value to Transactions (NVT) Ratio is neutral at 0.5, suggesting balanced on-chain activity. Together, these metrics point to a healthier foundation for potential future growth.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.