- Main event relates to Bitcoin’s supply being 99.3% in profit.
- Potential short-term price correction is expected.
- Long-term bullish momentum could resume post-correction.
Nearly all Bitcoin supply is in profit as experts foresee a likely short-term price dip, driven by historical predictive signals and current market sentiment.
This could result in institutional profit-taking, affecting Bitcoin’s price temporarily amid ongoing ETF inflows and measured optimism for a continued long-term bullish trend.
The cryptocurrency market is observing a rare on-chain condition where 99.3% of Bitcoin’s supply is currently in profit. This state has often preceded short-term corrections in the BTC price with long-term implications anticipated.
Expert Analysis
Experts like Murad Mahmudov and David Puell have long explored predictive on-chain metrics. Ted Pillows noted a historical pattern of price pullbacks under similar conditions, predicting corrections before bullish trends resume. As Ted Pillows, an analyst, observed, “Historically, when 99.3% of supply is in profit, we see 3–10% pullbacks before bullish trends resume.”
Market Insights
The immediate effects include potential profit-taking, as highlighted by analysts. Market sentiment and institutional ETF inflows suggest a long-term positive outlook for BTC despite possible short-term corrections. Financial implications are substantial as spot Bitcoin ETFs recently saw $3.2 billion inflows. Institutional treasuries are increasing allocations, indicating confidence despite the potential correction risks.
Historical data shows similar conditions have led to minor corrections followed by strong rallies. Analysts suggest that these corrections are temporary, and long-term trends remain optimistic if extreme market greed remains absent. Experts predict that institutional investments will sustain BTC’s growth potential. Citigroup projected BTC near $133,000 by year-end, largely driven by these ETF trends and broader market participation.
