Bitcoin supply is in profit at 99.3 percent. This historic level frequently elicits 3-10% short-term dips. BTC is trading at record-highs and increasing corrupting chances.

Bitcoin has just hit a very important milestone, where 99.3% of the total supply is now in profit, according to analyst Ted Pillows on X. 

Source – X

Bitcoin stands at a record high of about 123,137.14, which is close to its all-time high of 125,450. 

This is a record level of profitability that has been experienced at three other instances in history. This trend is likely to correlate with temporary price falls. Every preceding event in which Bitcoin’s supply in profit was over 99%, the market made corrections by 3 to 10%. 

This trend in history indicates a possible near-term downswing even though Bitcoin is experiencing bullish action at present. 

Pillows points out that traders have been cashing in on long-term rallies, which may cause short-term price drops before Bitcoin re-enters its general upward trend.

Bitcoin Profit Levels Signal Market Overheat Risks

This mass taking of profits tends to fuel temporary sell-offs. Cryptocurrency analytics provided by CryptoQuant indicate that the price of Bitcoin and its percentage of coins held in profit change in the same direction and indicate a higher level of investor trust, but also increase the chance that the market will be overheated in the near future. 

The Crypto Fear and Greed Index is at 63, which indicates a positive yet not hysterical mood of the traders. 

Bitcoin is close to new all-time highs, but it is a conservative hope since prior to the major tops, extreme greed above 80 was the norm.

On-chain indicators such as the Market Value to Realized Value (MVRV) ratio have soared to levels above 2.4, which is above the one-year average of 1.9. 

This implies that as holders are complacent, profitability extremes increase the risk of pressure on profits and volatility in the short run.

What Comes Next for Bitcoin’s Price?

It is possible that investors will experience a temporary correction in the market as they digest these record levels of profits. 

The 3-percent to 10-percent recurring historical pattern following the crossing of the 99-percent profitable line is a warning indicator. 

The recent price surge has put bitcoin in what analysts call an overheated zone, where the volume of sales can increase in the short term.

The mood on the market is by no means panicked at the moment. Analysts observe the calculated optimism and institutional inflows into Bitcoin ETFs, which will likely see further growth opportunities past the short-term corrections. 

Sources state that it is during the corrective phases that the asset will naturally correct before it may post other gains in the future.