Long-Term Holders Return to Profitability
Glassnode, an analytics firm, has observed a signal in Bitcoin’s (BTC) on-chain metrics that historically indicates the early stages of a bull market. The firm’s long-term holder MVRV (LTH-MVRV) metric, which tracks the behavior of long-term BTC investors, has entered “high-risk” territory.
When the LTH-MVRV signal hovers above the high-risk area, Bitcoin tends to experience significant market expansion. This suggests that long-term investors are returning to a meaningful level of profitability, marking the early stages of a bull market.
Percent of Supply in Profit Nears Euphoric Phase
Glassnode’s Percent of Supply in Profit (PSIP) metric, which measures the proportion of coins with a cost-basis lower than the current spot price, indicates that Bitcoin is nearing a “euphoric phase” of the bull market.
Historically, when this indicator trades above the upper band, it has aligned with the market entering the “Euphoric Phase.” During the recent market rally surrounding the spot ETF launch, this metric reached a very high risk, followed by a contraction down to $38,000.
Bitcoin’s Current Position
At the time of writing, Bitcoin is trading at $48,302.
Disclaimer
Opinions expressed in this article are not investment advice. Investors should conduct their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
