Key Takeaways:

Bitcoin’s Realized Cap hits a historic high above $900B, driven by fresh capital inflows.

Short-Term Holders see a +71% rise in profitable supply, the second-highest ever recorded.

Profit-taking hits $747M/day, but the Sell-Side Risk Ratio suggests more rally potential.

Bitcoin’s latest price action has precipitated a spectacular rebound in market mood and investor optimism. The leading cryptocurrency has reached as high as $107,000, bringing it closer to its record high of $109,000. The recent weekly close at $106,500 is an all-time high.

This surge follows Bitcoin increasing almost 40% in the last half-dozen weeks, boosting the wider digital asset market. The two-week price consolidation between $102,000 and $105,000 is a zone of resistance in which the buyers and sellers are currently balancing.

This strength has carried through into tangible financial recovery for all major cohorts of investors, according to the latest figures from Glassnode. One major consequence of such upward momentum is the rising Bitcoin Realized Cap, the total cost base for all the BTC in circulation, to an all-time high value of over $900 billion.

This indicator captures both short-term optimism and longer-term belief, as new money flows into the market, taking in profit-taking from investors currently in the green.

Bitcoin Short-Term Holders Shift Gears After Major Profit Uptick

One of the most striking shifts observed is among Short-Term Holders (STHs), who have experienced a 71% jump in the percentage of supply held in profit over just one month.

This is the second-largest recorded STH profit increase, showing just how rapidly the attitude can change in bull markets. Such turnaround is evidenced in the MVRV analysis by Glassnode: STH MVRV has gone from 0.82, representing losses, up to 1.13, registering +13% average unrealized profit.

These portfolio optimizations resulted in an acute increase in profit-taking. STHs in the past 30 days locked in an aggregate $11.4 billion in realized gains, ten times the amount locked in the month before.

Daily profit-taking reached a high of $747 million, an indicator that several individuals who purchased during recent downturns now stand to exit positions as prices advance.

Profit Pressure Mounts, But Market Still Has Room to Grow

Notwithstanding this profit realization wave, existing metrics indicate the bull cycle is far from being spent. The short-term holder realized profit/loss ratio is at a point where only 8% of trading sessions have reported a higher ratio, while the sell-side risk ratio is still below those at market tops in the past.

This metric, aimed at determining how much prices deviate from equilibrium, indicates that prices for most coins continue to be spent at near their cost base. Such a balance indicates there might still be room for Bitcoin prices to increase, as the investing public has not yet indicated the complete market top.

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Filed under: Bitcoin - @ May 22, 2025 5:01 am