Glassnode: 88% of Bitcoin supply is in profit, market support is strong, but short-term fluctuations still need to be watched
According to the latest data from Glassnode, 88% of Bitcoin supply is currently in profit, which shows that market support is quite strong. Although Bitcoin prices have fluctuated a bit recently, the overall market foundation is still very solid.
The report shows that Bitcoin's market value to realized value (MVRV) ratio has dropped to the long-term average of 1.74. Historically, this level usually means that the market is consolidating, and the last time this happened was in August 2024. At that time, unrealized gains were also cut, but then the market started to rise again. This shows that the market is resetting and preparing for the next round of gains.
At the same time, the realized profit and loss ratio has once again broken through 1.0, indicating that market sentiment is changing and traders are starting to turn from losing positions to profit. Glassnode's analysis believes that this shows that the market has enough liquidity and confidence to absorb realized gains, which is an important sign of a strong market.
Macro indicators also support this. Analyst Axel Adler Jr noted that the 30-day rate of change of the Bitcoin Composite Volatility Index is currently -3.5%, indicating that the market is still in the accumulation phase. Generally speaking, panic selling occurs when this index climbs above 15%. This further shows that most market participants are quietly laying out their positions in preparation for a larger price increase.
As of now, Bitcoin has risen slightly by 2.8% in the past 24 hours, and the trading price fluctuates between $97,000. In the past week, Bitcoin has risen by 2.5%, but it is still up 4.4% in two weeks. In the past 30 days, Bitcoin has risen by 23.6%, only 13% away from its all-time high.
However, there are still risks in the market. As Bitcoin approaches the psychological mark of $100,000, market observers are cautious about the potential influx of supply. Glassnode warned that in order to maintain the upward momentum, equally strong demand is needed to absorb any profit-taking. Whether the market can continue to rise in May depends on whether ETFs can continue to have net inflows, corporate bond purchases, and retail investors' interest.
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