Nearly all circulating bitcoin is now in profit following a sharp price rally, according to onchain analytics provider Glassnode.

As of Wednesday, 97% of the total bitcoin supply is above its acquisition cost, highlighting robust demand and positive sentiment in the market.

“Building on the accumulation trend, Bitcoin’s rally to a new all-time high has lifted nearly all circulating supply back into profit.”

The analysts noted that profit-taking has been gradual, with realized profits remaining contained.

This suggests an orderly rotation of holdings rather than a sudden wave of selling, which is often seen as a hallmark of a healthy bull market.

Key support at $117,000

Glassnode’s “Cost Basis Distribution Heatmap” indicates that structural support is strongest near $117,000, where approximately 190,000 BTC were last acquired.

The analysts suggested that if the price pulls back to this region, it could trigger renewed buying as recent entrants defend their profitable positions:

“While price discovery phases inherently carry the risk of exhaustion, a potential pullback into this region could invite renewed demand as recent buyers defend profitable entry zones.”

ETF inflows and rising leverage

Institutional demand remains strong, with spot Bitcoin ETFs in the U.S. seeing more than $2.5 billion in inflows this week, including their second-highest inflow day.

However, Glassnode cautions that rising leverage and elevated funding rates in the futures market could introduce short-term risks, making the market increasingly sensitive to profit-taking and leverage resets.

Outlook remains positive but cautious

Glassnode concluded that while the uptrend is robust and supported by institutional activity, the market’s high profit levels and increased leverage warrant caution.

With bitcoin prices currently retreating from recent highs, traders are watching key support zones and ETF inflows for signs of continued strength or near-term pullbacks.