Following a significant price increase, more than 95% of Bitcoin’s circulating supply is now in a state of profit, according to on-chain analytics firm Glassnode. This key metric indicates that the vast majority of holders acquired their coins at a price lower than the current market value.

Market Euphoria and Potential Profit-Taking

Historically, such high levels of unrealized profit across the network are associated with phases of market euphoria. When most investors are holding profitable positions, it can significantly influence market behavior.

Analysts suggest these conditions often act as a catalyst for two primary reactions. First, it could trigger a wave of profit-taking, particularly from long-term holders looking to realize their gains. Second, the overwhelmingly positive sentiment may encourage increased risk-taking from other market participants hoping to capitalize on the upward momentum.