- Bitcoin is nearing a critical threshold as over 85% of its circulating supply is now in profit, signaling a potential entry into a euphoric bullish phase.
- However, analysts warn that such euphoria often ends quickly and may trigger market corrections or profit-taking.
Bitcoin Profit Supply Surges Toward Critical 90% Mark
Bitcoin may be on the verge of entering another euphoric rally phase, according to new insights from on-chain analytics firm CryptoQuant. Their latest chart highlights a major surge in the Bitcoin Supply in Profit—a metric that shows how much of the circulating BTC is currently valued higher than its last move or purchase price. Currently sitting above 85%, this level has historically foreshadowed explosive bullish momentum.
CryptoQuant analyst Darkfost noted that when this metric exceeds 90%, it “consistently triggered euphoric phases.” That magic number is now in sight as Bitcoin attempts to reclaim the $95,000 level it briefly touched earlier this week.
Why This Metric Matters for BTC Bulls
The supply in profit metric isn’t just a vanity number—it often signals market sentiment. As more BTC holders are “in the green,” confidence and risk appetite tend to grow, often pushing prices higher. According to Darkfost, the current 85% reading is “fairly positive” and reflects renewed optimism after a recent correction saw this figure dip near 75%—a zone aligned with the global average.
The Catch: Euphoria Doesn’t Last Forever
While history shows that surpassing 90% in supply in profit can spark market-wide euphoria, it often comes with a warning label. These euphoric stages, as the analyst emphasized, are frequently followed by short- to medium-term corrections. In other words: after the party, comes the hangover.
Even more concerning, if the supply in profit unexpectedly drops below the 75% threshold, it could trigger a wave of profit-taking—or even worse, a capitulation event.
Bitcoin is tiptoeing toward a historic threshold that has often lit the fuse for explosive price action. But traders beware—euphoria may be close, yet it’s also a double-edged sword. The key is to stay alert, manage risk, and recognize that when everyone’s in profit, the market can flip fast.
