Recent gains in Bitcoin’s price have not only boosted market confidence but also led to a significant Bitcoin Supply milestone. As of now, nearly 99.3% of all Bitcoin is in profit, according to data from the on-chain analytics platform, CryptoQuant. This development has caught the attention of market analysts and traders alike.

Bitcoin Supply and Potential Price Correction

Historically, when Bitcoin Supply in profit exceeds 99%, the market often experiences short-term corrections. Analyst Ted Pillows, in a recent analysis, notes that such conditions have previously led to market drawdowns ranging from 3% to 10%. These corrections are considered necessary “cooling phases,” allowing the market to reset before continuing its upward trend.

Rekt Capital, another notable analyst, concurs with this perspective. In his analysis, he mentions that Bitcoin’s price often experiences pullbacks of around 13% following its peak at all-time highs, such as the recent level of $124,000. Based on these insights, Bitcoin prices may dip to between $106,000 and $109,000 before finding robust support for the next upward movement.

Bitcoin Price Outlook and Market Trends

Currently trading at $122,246, Bitcoin has seen an 11.73% rise over the past week. Despite some cautionary outlooks, October historically remains a bullish month for Bitcoin, with an average gain of 21.89% and a median gain of 21.20%. Analysts from Coincodex have noted the prevailing bullish sentiment, supported by the Fear & Greed Index reaching a level of 71, signifying extreme greed.

Looking ahead, short-term projections suggest Bitcoin could rise to $130,994 within five days. However, a subsequent retracement to approximately $126,535 is expected. Despite these fluctuations, forecasts remain optimistic, predicting Bitcoin to reach $140,009 by the end of 2025.

With a market cap of $2.43 trillion, Bitcoin continues to dominate the cryptocurrency space, holding a market dominance of 58.4%. This strong market position underscores the confidence investors have in Bitcoin’s long-term potential.

The recent surge in Bitcoin Supply in profit is a testament to the cryptocurrency’s resilience and the market’s renewed optimism. However, investors should remain vigilant, as historical trends suggest potential corrections on the horizon.

The post Bitcoin Supply Milestone: 5 Amazing Insights on Market Strength and Correction appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Recent data indicates that Ethereum supply is being tightened due to large-scale corporate purchases. CoinMetrics reports that since July, corporate treasuries have amassed around 2.2 million ETH, representing approximately 1.8% of Ethereum’s total supply. This accumulation is led by major firms such as Bitmine Immersion Technologies, SharpLink Gaming, The Ether Machine, Bit Digital, and BTCS Inc.

The Impact of Corporate Treasuries on Ethereum Supply

Corporations like Bitmine have ambitious goals, holding 0.95% of ETH’s supply with aspirations to reach 5%. This activity intersects with Ethereum’s proof-of-stake issuance model, potentially causing shifts between inflationary and deflationary states. Large corporate acquisitions can further tighten Ethereum supply, particularly during deflationary periods.

Since the Merge, Ethereum’s net supply has risen by 454.3K ETH, with a total of 2.44 million issued and 1.98 million burned. Despite this increase, corporate treasuries have acquired more than this net supply addition, reflecting the tightening of the Ethereum supply.

Corporate Strategies and Their Implications

Many corporate treasuries are not just holding but also deploying their ETH holdings through staking and DeFi. For instance, SharpLink Gaming has staked a significant portion of its ETH, while BTCS Inc. is earning yield via Rocket Pool. This strategic use of Ethereum provides income while contributing to network security.

Moreover, liquid staking tokens like stETH are enabling more capital-efficient borrowing within DeFi platforms. On Aave v3, ETH and stETH create a pool of around 1.1 million ETH, a figure expected to grow as corporate treasuries increase participation.

Long-Term Effects on Ethereum Network

The expansion of publicly listed corporate ETH treasuries could have profound long-term effects on Ethereum’s network health. CoinMetrics suggests that these positions can decrease the circulating supply, bolster legitimacy, and enhance liquidity.

However, there are potential risks. High leverage, concentration of holdings, and operational challenges could pose threats to network stability. Additionally, market conditions and investor sentiment will heavily influence these treasuries’ decisions. Strong balance sheets and confidence in Ethereum encourage participation, whereas sharp price declines and tighter liquidity may lead to asset sales.

Ultimately, the tightening of Ethereum supply through corporate treasuries could create a positive feedback loop, increasing network demand, fee revenue, and staking participation, while also enhancing DeFi depth.

The post Ethereum Supply: 5 Amazing Insights on Corporate Treasuries’ Impact appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The on-chain analytics firm, Santiment, in a fresh publication, detailed the supply concentration levels of various cryptocurrencies, including Shiba Inu, Ethereum, Pepe, USDT, USDC, DAI, Chainlink (LINK), and Uniswap (UNI).

The graph illustrates that USDC, a stablecoin, has the lowest supply concentration in the top 10 wallets, around 27%. Chainlink and DAI follow suit with supply centralization levels at 32% and 33%, respectively. Conversely, Uniswap and Ethereum exhibit high levels of centralization, with 51% and 49% of their respective supplies held by the top 10 wallets.

However, Shiba Inu proves to be the most centralized, with the top ten whales holding an enormous 62% of the total supply. Comparatively, Pepe, another memecoin, has a supply centralization of 39%.

For any cryptocurrency, a high level of supply centralization is generally viewed as a negative indication for stability, given that tokens represent power within the network. This is particularly relevant for proof-of-stake (PoS) assets like Ethereum.

Santiment cautions retail traders that it is often safer to hold coins with less supply held by the top whales. This mitigates the risk of sudden price drops or market manipulation should these whales decide to liquidate their positions.

Given this, cryptocurrencies like Ethereum, Uniswap, and especially Shiba Inu, which have a significant proportion of their supply in the hands of the top ten whales, may currently be in a precarious position.

In related news, the cryptocurrency market sentiment is nearing extreme greed, as per the Fear & Greed Index. This index computes a score ranging from zero to hundred based on various factors to gauge investor sentiment. Currently, the index stands at a substantial 73, indicating a strong presence of greed among traders.

Historically, market movements have often defied crowd expectations, particularly at the extreme ends of the index. While the market is not yet in the extreme greed zone, it is teetering on the edge.

At the time of writing, Shiba Inu’s price stands at approximately $0.0000115, rising over 3% in the past week.

The post Top 10 Whales Control 62% of Shiba Inu Supply, Outpacing Other Major Cryptocurrencies appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

A report recently released by Fidelity Digital Assets points to a significant shift in Bitcoin’s supply dynamics post the 2024 halving. The report highlights that the ‘ancient’ Bitcoin supply, which refers to coins held for a decade or longer, has begun to outstrip new issuance. Each day, 550 BTC moves into the ancient supply category, compared to 450 BTC issued.

This trend, when combined with persistent buying from institutional investors, raises an intriguing question: Could this escalating demand drive Bitcoin’s price to $1 million?

The convergence of Bitcoin accumulation and scarcity has resulted in over 17% of the total issuance (3.4 million BTC valued at $360 billion at $107,000/BTC) being classified as ancient supply. This reflects a strong conviction among holders, with daily decreases happening less than 3% of the time. The report suggests this proportion could reach 20% by 2028 and 25% by 2034, further tightening the available supply.

At the same time, capital from institutional investors is growing. Bitwise anticipates Bitcoin inflows to hit $120 billion by 2025 and $300 billion by 2026 in its base case scenario. This scenario is driven by diverse participants including nation-states, US states, wealth management platforms, and public companies. In a bullish case, inflows could exceed $426 billion, absorbing over 4 million Bitcoin (19% of supply), thereby further tightening liquidity.

This institutional accumulation, coupled with the growth of the ancient supply, paints a picture where a significant portion of Bitcoin’s supply becomes illiquid. This could potentially heighten analysts’ price predictions due to increased demand.

To reach a price of $1 million per Bitcoin, a market capitalization of $21 trillion is needed, a tenfold increase from the current $2.10 trillion with 19,880,604 BTC mined, which constitutes 94.66% of the 21 million total. The fixed supply and growing illiquidity could facilitate BTC’s next big milestone. Historical trends after the halving events (2013, 2017, 2021) show rallies driven by reduced supply growth and rising demand, suggesting that current dynamics could lead to a similar outcome.

However, certain challenges still exist. After the 2024 US election, the ancient supply declined on 10% of days—almost four times the historical average—indicating that even long-term holders can sell during periods of volatility. Similarly, five-year holder supply decreased 39% of days post-election, three times the typical rate, correlating with sideways price action in Q1 2025.

This suggests that while illiquidity trends are strong, market conditions can trigger supply increases, potentially moderating price appreciation. However, Bitwise noted $35 billion in sidelined demand in 2024 due to risk-averse policies at Morgan Stanley and Goldman Sachs, which manage $60 trillion in client assets. Its bear case projects over $150 billion in inflows, while the bull case exceeds $426 billion, absorbing 4,269,000 BTC, underscoring significant demand potential.

In conclusion, Bitcoin’s ancient supply and projected institutional inflows paint a picture of increasing scarcity. While reaching $1 million is a lofty target, the current trajectories suggest it is a realistic price target.

The post Longstanding Bitcoin Holders Surpass Newly Mined BTC Supply, Fuelling Price Speculation appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bitcoin’s Demand Shocks

In the past one and a half years, Bitcoin exchange balances have dipped by a million BTC, marking a 30% decline, mainly as a result of heightened holdings by ETFs and other acquisition entities. These tools are channeling funds from conventional equity and fixed income investors into the crypto realm.

The drop in exchange balances is perceived as a bullish indicator, signalling a shift towards long-term holding patterns. As more institutional offerings enter the market and certain governments mull over including Bitcoin in their reserves, Sygnum sees the potential for demand shocks and upward volatility. These elements, according to the bank, pave the way for a potential prolongation of the current bull run.

As institutional acceptance fuels Bitcoin’s upward trajectory, governmental actions hint at a growing role for the asset on both state and national scales.

Global Interest in Bitcoin Reserve Adoption Grows

Three US states have recently endorsed bills supporting Bitcoin’s inclusion in government reserves, with New Hampshire leading the charge by being the first to sign such a bill into law. Texas is expected to follow suit, given the public support from the state’s governor. International interest is also on the rise. The government of Pakistan and the Reform UK party, presently leading in the British election polls, have both revealed plans to explore central bank Bitcoin reserves.

Meanwhile, policy think tanks in China have proposed similar ideas, and unconfirmed news suggests that silent accumulation might already be in progress. While no official Bitcoin purchases have started under these approved schemes, Sygnum analysts speculate that actual acquisitions could serve as a significant price catalyst.

The blend of rising demand and the potent signal of state and national entities entering the market might stimulate extensive institutional interest and hasten Bitcoin’s mainstream adoption.

The post Tightening Bitcoin (BTC) Supply Poised to Trigger Next Price Upswing appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bitcoin’s market value has seen a significant recovery from its long-standing average profitability percentage, marking a noteworthy shift in market dynamics. In August 2024, for instance, Bitcoin had retested its 75% mean at approximately $60,000. This implies that the current price bracket of $75,000–$95,000 could be indicative of a structural market bottom, mirroring market conditions observed in the third quarter of 2024.

Cryptocurrency researcher Axel Adler Jr. highlights the total exchange flow to network activity ratio, which signals a 1.5x decline following Bitcoin’s all-time high. This affirms that the ongoing growth is more organic than speculative. Adler Jr. points out that unlike past price peaks, which were marked by heavy selling, the current situation doesn’t exhibit such urgency, suggesting a more stable market environment.

High profitability coupled with reduced inflows into exchanges suggests lower selling pressure from holders, thus fostering a healthier outlook between the $75,000 and $95,000 range. It appears that investors are viewing Bitcoin as undervalued rather than a chance to exit, aligning with the overall bullish sentiment.

Data from Glassnode indicates that the Market Value to Realized Value (MVRV) Ratio, a crucial market sentiment barometer, has returned to its long-term average of 1.74. This ratio has traditionally acted as a support zone during consolidation phases since January 2024, indicating a cooling off of unrealized gains and a potential foundation for future growth.

Simultaneously, the Network Value to Transactions (NVT) ratio is neutral at 0.5 with Bitcoin currently priced at $94,400. This is a stark contrast to the overbought indicator when Bitcoin was at this price level in February 2025. This change in market dynamics and the evolving behavior of holders suggest the current profitable investors may be less likely to sell at these levels, potentially bolstering the bullish case for the existing market structure.

The post Bitcoin Market Dynamics Shift as 88% of Supply Proves Profitable appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.