The post Bitcoin Profitability Index Hits 221% – Bullish Data Reveals It’s Far From Past Cycle Peaks appeared on BitcoinEthereumNews.com.

Bitcoin has smashed through its all-time highs for the second day in a row, fueled by the recent US election results and a Federal Reserve interest rate cut of 25 basis points. Donald Trump’s victory has brought fresh optimism among investors, with many seeing his pro-business stance as a catalyst for Bitcoin’s ongoing rally.  The recent rate cut, aimed at stimulating the economy, has also encouraged more capital to flow into risk assets like BTC, propelling its momentum. Data from CryptoQuant reveals that the Bitcoin Profitability Index is now at 221%—a striking figure, though still notably below the peaks in previous cycles. This suggests significant room for further upside, especially as bullish sentiment grows. Investors and analysts are closely monitoring this metric, with many speculating that Bitcoin could continue climbing in the coming weeks. The next phase will be critical as BTC approaches uncharted territory, and investor optimism signals the potential for sustained gains this cycle. Bitcoin Entering Bullish Phase Bitcoin has entered a new bullish phase following a prolonged 7-month accumulation period, marked by a breakout to new all-time highs. This phase is underscored by insightful data from CryptoQuant analyst Axel Adler, who highlighted the Bitcoin Profitability Index’s current level of 221%.  Bitcoin average profitability index hits 221% | Source: Axel Adler on X While this is a strong profitability level, it’s still well below previous cycle peaks, which reached highs of 460% and 395%, and the most recent peak of 272%. This suggests that, despite Bitcoin’s profitability, there remains significant potential for further gains before hitting a cycle top. Adler notes that, on average, BTC holders are seeing profitability at 121% above their initial investments, a promising sign for those expecting sustained growth. Historically, phases like this in Bitcoin’s market cycle tend to be aggressive but relatively short-lived, often lasting…

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Filed under: News - @ November 9, 2024 5:03 am