Bitcoin’s unrealized profits have reached $1.2T, with investors leaning toward holding instead of selling.
Bitcoin found strong support at $98K amid market volatility, signaling bullish momentum.
Institutional demand and stablecoin liquidity suggest a stable market with potential for future growth.
According to a recent observation by Glassnode, it has been onbserved that Bitcoin's recent surge to $107,000 has pushed a majority of investors back into profit, with unrealized gains reaching $1.2 trillion. Despite this substantial growth, the market shows a distinct trend toward holding rather than selling. This HODLing behavior, coupled with reduced sell-side pressure and sustained institutional inflows, signals a shift in investor sentiment, marking a new phase in Bitcoin’s evolution.
A Solid Foundation at $98K Support
The market value of Bitcoin was volatile, falling from $106,000 to $99,000 due to the increasing geopolitical tension between Israel and Iran. However, the price has been firmly supported at the level of $98.3K, which is the mark of the short-term holder's cost base.
This bearish relief implies that the bulls are still in command and the momentum is tilted towards the upside side since Bitcoin shot up to its current price of $107,000. The realization of sustaining such support even in a rough market environment indicates the strength of the market structure of Bitcoin.
Unrealized Profits at an All-Time High
The capitalization of Bitcoin has skyrocketed to $2.13 trillion compared to the cycle low of $304 billion. In the meantime, it has achieved the capitalization of $958 billion, which reflects an enhancement in liquidity. This discrepancy between the market cap and realized one is now amounting to some $1.2 trillion in unrealized income amongst investors.
Source: Glassnode (BTC Unrealized Profit/Loss)
Such a large paper profit discloses the continuing value enhancement, and the pressure of selling that would occur should the mood change. But the behavior of investors today, however, shows they still prefer to hold rather than to sell.
Decreased Sell-Side Pressure
Despite Bitcoin’s high profitability, realized profit has remained muted. Investors are locking in about $872 million in realized profit daily, which is far less than the $2.8 billion seen during Bitcoin’s $73K and $107K price peaks.
Additionally, the Long-Term Holder (LTH) supply has risen to an all-time high of 14.7 million BTC, confirming that investors are holding onto their assets. The Liveliness metric, which tracks spending activity, also shows a decline, further emphasizing the dominance of HODLing over profit-taking.
Stablecoin Liquidity and Institutional Demand
The market and stablecoin have been instrumental in terms of liquidity, with the Stablecoin Supply Ratio (SSR) at its 0 when it is close to baseline. This is a sign of equilibrium in a demand situation and an indication that underlying market stability is better than past price breakouts.
Source: Glassnode (Stablecoin Supply Ratio)
Moreover, institutional demand is also healthy, and it is witnessed through large inflows into the U.S. Bitcoin spot ETFs. These inflows have culminated in an average of $298 million in the past week and built on the expanding institutional demand to gain exposure to Bitcoin.
Source: Glassnode (BTC ETFs)
The rise of Bitcoin to the prices of $107,000 indicates a developed marketplace and high rates of confidence among investors. The marketplace is less volatile with HODLing dominating over profit-taking, which leads to a decrease in profit-realizing and an additional increase in supply held by Long-Term Holders.
Institutional demand and stablecoin liquidity also prove the idea that the market is in a stability period, and there is a significant amount of capital waiting to be utilized. This is an indication that the trend of Bitcoin will closely be stable and the increased liquidity in the future may show upward directions.
