BITCOIN PROFIT RATIO NEARS BULL MARKET PEAKS 

The proportion of Bitcoin in possession that has become profitable once again is nearing heights last observed during the peak phases of the preceding two bull markets.

As per the latest findings from on-chain analytics firm CryptoQuant, dated February 28, the current supply-in-profit ratio of Bitcoin is significantly elevated.

The firm highlighted that the present ratio mirrors those seen at the summit of the 2019 “echo bubble” and at the onset of the 2020 bull market.”

It’s also getting close to the levels witnessed during the dual market cycle zeniths in 2021, when Bitcoin recorded new historic highs.

Bitcoin Holders Seeing Profits

This metric calculates the ratio of the total value of UTXO (unspent transaction outputs) that are profitable against the overall UTXO value. Essentially, it represents the percentage of Bitcoin holders with unrealized profits.

This indicator is commonly utilized to pinpoint the highs and lows within Bitcoin’s long-term market cycles. Currently, it stands impressively high at nearly 95%, as reported by CryptoQuant.

Analysts at the firm suggest this year’s surge in institutional interest might maintain the ratio at levels comparable to those in 2017 and 2021. However, they caution against making hasty investments due to potential upcoming market dips.

On February 27, predictions by CryptoQuant analysts suggested Bitcoin’s value could escalate to between $55,000 and $60,000, or even reach a new pinnacle, followed by a market correction that would set the stage for a bull rally.

Glassnode, another on-chain analytics service, reported a growing risk tolerance among Bitcoin investors, evidenced by increasing speculative activities across various market aspects including capital flows, exchange activities, derivatives leverage, and institutional interest.

Bitcoin advocate Anthony Pompliano remarked on Wall Street’s growing demand for Bitcoin, emphasizing the scarcity faced by everyone.

Cryptocurrency Market Trends

The cryptocurrency market has experienced a 1.5% increase today, reaching a 22-month peak with a total capitalization of $2.25 trillion.

Since the start of 2024, the crypto market has impressively surged by 27%, with an influx of $480 billion.

Bitcoin recently achieved a 25-month high, hitting $57,468 in late February 28 trading, but has since slightly receded below the $57,000 mark. The digital currency has appreciated by 15% in the last two weeks, now only 17.5% shy of its highest-ever value.

Ethereum’s price has remained steady today at $3,243. While the performance of altcoins varies, Ripple (XRP), Dogecoin (DOGE), and Shiba Inu (SHIB) have noted substantial gains.

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