High Bitcoin Stock Pretaining Profit at 88% Indicates Solid Market Strength: Glassnode Insights
Sure thing! Let's take a look at the current state of Bitcoin (BTC) and the experiment that's unfolding beneath its volatile surface.
Despite a recent tumble from an astounding all-time high of over $109,000, Bitcoin has bounced back from its April slump, settling comfortably above $94,000. In fact, 88% of its total supply is now sitting pretty in the green zone, a testament to the market's resilience.
Navigating the Market Quagmire
The latest report from Glassnode suggests we might be witnessing a much-needed market shakeup. The Bitcoin Market Value to Realized Value (MVRV) ratio is cooling off towards its long-term mean of 1.74. Historically, this kind of reset level corresponds with periods of market consolidation, especially during the August 2022 drawdown where unrealized gains faced a severe trimming before another bull run.
Simultaneously, the Realized Profit/Loss Ratio has scooted back above 1.0, indicating a shift in sentiment as traders move from underwater positions to score modest profits. Glassnode's analysis implies that this development signals a strong market with enough liquidity and confidence to absorb these realized gains.
Macro Headwinds Signal Calm Before the Storm
Even macro indicators seem to align with this viewpoint. Analyst Axel Adler Jr has pointed out that Bitcoin's Composite Volatility Index remains at -3.5%, typical of an accumulation phase. Generally, panic-selling phases kick in when this index swells above 15%, suggesting that market participants are quietly positioning themselves for a bigger price surge.
A Tug of War in the Short Term
However, the short-term outlook for BTC appears tamer. As of this writing, the king of cryptocurrencies slipped 1.3% in the last 24 hours, trading around $94,306 after a dance between $93,806 and $95,741. The asset has dipped 0.9% over the past week but still managed an 8.5% gain across two weeks. Despite these minor fluctuations, it's also just 13% shy of hitting its all-time high.
Yet, potential pitfalls loom as BTC inches closer to the psychologically important $100,000 barrier, a level historically associated with aggressive selling by long-term holders. Glassnode cautions that sustaining this upward momentum will require equal vigor in demand to absorb any profit-taking.
Whether this surge in demand comes from sustained ETF inflows, corporate treasury buys, or a new wave of retail interest is the question on everyone's lips as May unfolds.
Fun fact: Here's a little nugget for those who dig such tidbits: This month marks the fifth anniversary of the infamous Mt. Gox exchange collapse, which saw millions of dollars' worth of Bitcoin vanish over a three-year period. Wonder what the market would look like today if those coins had grown alongside the rest. 🤯
Insightful Additions:
- Current Volatility Levels: Recent observations indicate Bitcoin is experiencing historically low volatility levels, with plunges to record lows observed in mid-April 2025[1].
- Short-term Support Levels: Key support levels like $93,000-$95,000 are currently acting as a safety net for Bitcoin, reinforcing the bullish outlook[2].
- Institutional Influence on Volatility: Sustained institutional demand through ETFs continues to provide baseline support[1][2], while corporates are also increasingly showing interest[3].
- Technical Breakouts: The ongoing battle to break above $100,000 and below $90,000 will play a crucial role in determining the next phase of volatility[2][3].
- Despite a tumble from an all-time high, Bitcoin has shown resilience, with 88% of its total supply in the green zone as of 2022.
- The Bitcoin Market Value to Realized Value (MVRV) ratio is cooling off towards its long-term mean, a sign of market shakeup and possible consolidation.
- The Realized Profit/Loss Ratio has risen, indicating a shift in sentiment as traders move from underwater positions to score modest profits, suggesting a strong market with ample liquidity.
- In the macro outlook, Bitcoin's Composite Volatility Index remains low, suggesting an accumulation phase before a potential price surge.
- However, in the short term, Bitcoin is facing a tug of war, with minor fluctuations and significant potential pitfalls approaching the $100,000 barrier.
- As May unfolds, the question remains whether sustained ETF inflows, corporate treasury buys, or a new wave of retail interest will be the driving force behind absorbing profit-taking and fueling the next phase of Bitcoin's growth.
