100% of Bitcoin Addresses Are in Profit, What Next for BTC Price?

Key Insights:

• Bitcoin supply hits 99% profitability, reflecting a strong holder conviction.
• Bitcoin price could enter the final leg of its bullish phase, based on the exchange netflows metric.
• BTC hits new highs, driven by massive spot ETF inflows, whale accumulation, and rising on-chain activity.

A recent onchain data from Glassnode revealed 99% of the total Bitcoin supply is in profit. The almost 100% profitability in Bitcoin comes amid an ongoing price uptrend.

Now, expectations are high that the BTC price may climb higher. Still, some market participants have raised bearish sentiments, citing historical patterns.

Bitcoin Price Surge to Profitability

Onchain data analytics provider Glassnode revealed in an X post that 99% of the Bitcoin supply is currently in profit.

Historically, levels above 90% have often coincided with a strong BTC bull market. The BTC supply profitability metric is helpful when investors need to determine the overall market sentiment.

When 95% or more of all holders are in the green, this is a reliable indicator of a market top. On the other hand, market bottoms tend to occur when the metric falls below 50%.

Glassnode highlighted that 99% of all BTC supply in profit is due to significant price appreciation. However, the platform pointed out that the metric climbed as high as 95% in July, despite price corrections.

Notably, the metric found support at its +1σ band, suggesting investors continued to anchor around unrealized gains. According to Glassnode, this reinforces a resilient market structure through the volatility.

Overall, the growing profitability of BTC is a sign that bulls are likely preparing to stage another major rally.

At press time, BTC hovered around $118,609, demonstrating a 1.9% decline over the past 24 hours.

Unsurprisingly, BTC price hit a new high of $124,210 in today’s morning trade. Although the price has dropped to the $118,000 level, investor activity remained high.

Over the past 24 hours, the trading volume surged 49.2% to $108 billion.

Is the Final Bitcoin Price Parabolic Rally at play?

Meanwhile, the exchange netflows metric could decide the next direction for the Bitcoin price. The net inflows/outflows metric is regarded as a reliable indicator of selling pressure.

According to reports from CryptoQuant, the metric has bottomed in the current cycle.

Note that the netflow indicator highlights the trend of traders sending money in and out of exchanges.

Generally, elevated netflows on spot exchanges signal stronger sell pressure. In contrast, elevated netflows on derivatives exchanges tend to imply heightened volatility risk.

In previous cycles, particularly in 2017 and 2021, Bitcoin’s final surge commenced shortly after exchange netflow registered a local negative low.

So far this year, it remains uncertain whether the current reading represents the cycle’s low.

However, Bitcoin price could enter the final leg of its bullish phase if the current bottom reading proves to be a local low.

A key principle to note is that long-term whale holders typically refrain from selling unless prices climb substantially higher.

BTC Price Prediction: What Next?

Amid the ongoing dynamics, traders and investors are watching to see the next BTC price action.

Crypto analyst Rekt Capital highlighted that Bitcoin price has hit a new all-time high at the $124,000 levels.

He reiterated that BTC has confirmed its breakout from the Bull Flag and turned the $120,000 level into new support.

This support is poised to push BTC towards a possible breakout at $125,000. Earlier this week, S2F founder PlanB projected that BTC would hit $300,000.

Following the recent price rally, Bitcoin has overtaken Alphabet to become the fifth-largest asset globally.

Notably, massive spot ETF inflows, whale accumulation, and rising on-chain activity drive the latest price momentum.

On August 12, Japanese firm Metaplanet announced it purchased an additional 518 BTC, valued at about $61.4 million. This buy pushed the firm’s Bitcoin holdings to a total of 18,113 BTC.

Furthermore, Trump Advisor David Bailey is also preparing to buy $760 million worth of BTC, emphasizing strong investor confidence.