Bitcoin’s On-Chain Profitability Has Surged With 97% of Supply Now in Profit: Glassnode

Bitcoin’s latest breakout is being fueled by institutions and dependable on-chain request alternatively than speculation, according to caller information from Glassnode.

In the Oct. 8 variation of its "The Week On-chain" newsletter, the analytics steadfast said bitcoin’s surge to a caller all-time precocious adjacent $126,000 earlier this week was powered by beardown ETF inflows and accordant accumulation from smaller marketplace participants.

The determination pushed bitcoin into caller terms find earlier consolidating adjacent $122,500 connected Wednesday.

ETF request returns

Glassnode said much than $2.2 cardinal flowed into U.S. spot bitcoin ETFs wrong a azygous week, marking 1 of the strongest waves of organization buying since April.

Those inflows reversed the mild redemptions seen successful September and helped sorb overmuch of the disposable proviso connected exchanges.

The steadfast noted that the 4th fourth has historically been bitcoin’s astir favorable season, arsenic nonrecreational investors often rebalance portfolios toward higher-risk assets specified arsenic crypto and small-cap stocks.

Sustained ETF demand, it added, could proceed to anchor prices arsenic year-end approaches.

Smaller holders thrust accumulation

Glassnode’s on-chain information amusement that mid-tier holders, oregon wallets containing betwixt 10 and 1,000 BTC, person been the main buyers down the latest limb higher.

These accounts person seemingly steadily accrued their balances portion larger whales person taken mean profits, creating what the steadfast described arsenic a “more integrated accumulation phase.”

Nearly 97% of circulating proviso is present successful profit, a level that typically marks late-stage bull cycles but does not yet amusement signs of exhaustion.

The study highlighted the $117,000–$120,000 portion arsenic a cardinal country of on-chain support, with astir 190,000 BTC past transacted determination — a terms scope wherever caller buyers whitethorn measurement successful if markets propulsion back.

Leverage adds a enactment of caution

While Glassnode described marketplace conditions arsenic “robust but maturing,” it cautioned that futures unfastened involvement and backing rates person some risen sharply. It noted that annualized backing present exceeds 8%, suggesting a buildup of leveraged agelong positions that could heighten short-term fragility.

Even so, Glassnode argued that realized profits stay controlled compared with anterior marketplace tops, signaling that investors are rotating holdings alternatively than rushing to exit.

A structurally beardown market

Overall, Glassnode said bitcoin’s operation remains sound, underpinned by organization demand, heavy liquidity, and broad-based accumulation.

The steadfast concluded that arsenic agelong arsenic ETF inflows persist, bitcoin’s rally could widen further into the 4th quarter, reinforcing its presumption arsenic the astir structurally supported uptrend successful years.