Glassnode Indicates Robust Market Backing with 88% of Bitcoin Supply in Profit

Bitcoin (BTC) is showing strong market support, with 88% of its circulating supply currently in profit, despite recent fluctuations, according to on-chain data from Glassnode. The cryptocurrency's Market Value to Realized Value (MVRV) ratio is in line with its long-term mean of 1.74, marking a phase of market consolidation.

The Realized Profit/Loss Ratio is back above 1.0, indicating a positive change in trader sentiment. Moreover, macro indicators suggest the market is still in an accumulation phase, with the 30-day change in Bitcoin's Composite Volatility Index at -3.5%. However, as Bitcoin edges closer to the $100,000 mark, there are concerns about a potential increase in supply which will need strong demand to maintain upward momentum.

Glassnode's report highlights key areas of potential demand, including continued ETF inflows, corporate treasury buys, and retail interest.