Key Takeaways:
93.4% Bitcoin Supply Holders Are Profitable, Heralding a New “Frenzy” Phase
The frenzy phase lasts 6-12 months, suggesting more upside potential
Long-term holders and funds are accumulating again, signaling a continuation of the trend


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LUCKNOW (CoinChapter.com) - After months of selling, long-term Bitcoin investors have started accumulating Bitcoin again. This re-accumulation shift occurred when BTC prices stabilized below the all-time highs reached in March 2024.
Bitcoin reached a new record price of $73,000 in early March. At that high point, long-term holders (investors who held for more than 6 months) allocated a large amount of supply to the market. This selling pressure from long-term investors taking profits caused the price of Bitcoin to fall 20.3% from the high of $73,000 to around $57,500 at the end of April.


source:
Glassnode
This shallow correction in Bitcoin from its March highs suggests that there was no froth and unsustainably high prices during the initial upswing. This pattern is similar to the healthy 2015-2017 bull cycle that preceded Bitcoin’s exponential rise.
However, data now shows that long-term holders began to accumulate over the past month as BTC prices recovered to the $70,000 level. Their total Bitcoin holdings have grown by about 12,000 BTC since the end of April as they bought the pullback.
Institutional demand surges via Bitcoin ETFs
This accumulation of long-term holders is being driven by a resurgent demand for Bitcoin ETFs, which saw net outflows of $148 million per day at the low of around $57,500 in April, compared with net inflows of $242 million per day last week.


source:
Glassnode
This multi-million dollar daily net inflow stands in stark contrast to the typical $32 million daily selling pressure from miners. ETF demand is nearly 8 times greater than this coordinated miner daily selling pressure, indicating that institutional buyer demand is returning to the Bitcoin market.
Profitable supply ratio indicates a new "mania" phase
A key on-chain metric suggests that Bitcoin has entered a new “mania” phase following the March sell-off. Based on the spot price, 93.4% of Bitcoin’s circulating supply currently holds unrealized profits, a percentage that has crossed the statistically significant 90% threshold.
This 90% profit supply level has often been a precursor to continued gains in past bull cycles. In previous bull cycles, a break above this level would kick off a “pre-mania” phase where some long-term holders began to take profits.
Long-term holders tend to sell a portion of their holdings accumulated during bear markets in order to realize profits when prices rise. The true “mania” phase occurs as Bitcoin pushes toward new all-time highs.
This “mania” phase begins with 6 to 12 months of choppy sideways price action as Bitcoin pushes toward new all-time highs, while the percentages hover in the 80-95% range. The current mania phase is only 2.5 months old.


source:
Glassnode
With such a large percentage of Bitcoin’s supply in profit and the frenzy phase just beginning, many analysts believe the pattern is ripe for further gains once this consolidation period is over.