According to CryptoQuant, 99% of UTXOs are currently in profit, signaling potential market euphoria. UTXOs (Unspent Transaction Outputs) are a technical mechanism that ensures each BTC is only spent once, and they allow for assessing unrealized profits on unspent BTC.

Reaching the 99% profit threshold is often associated with periods of market euphoria—typically a very bullish signal—but also one that calls for caution. At present, however, it's unclear whether the market has entered such a phase, as macroeconomic uncertainties and unclear policy direction from the Trump administration are keeping investors cautious.

If this percentage starts to decline, it could mean shrinking unrealized profits, which may trigger significant profit-taking and force latecomers to capitulate and sell at a loss.