Bitcoin’s supply to profit ratio is close to peak bull market levels.

Bitcoin's supply-to-earnings ratio is currently extremely high, according to a report by Chain Analytics firm CryptoQuant on February 28.

He pointed out that the current ratio is similar to the ratio recorded at the peak of the 2019 eco bubble and the beginning of the 2020 bull market.

Additionally, it is approaching the levels seen at two market cycle highs in 2021, when BTC made new all-time highs.

$BTC supply at profit ratio' is very high!

“The current ratio is similar to the ratio recorded at the peak of the echo bubble in 2019, the beginning of the 2020 bull market (blue circles).” – by @Signal_Quant

Link 👇

— CryptoQuant.com (@cryptoquant_com) February 27, 2024

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Bitcoin Hodler with profit

The metric is the ratio of the sum of UTXO (unspent transaction output) value to the total sum of UTXO in profit. Simply put, it's the ratio of Bitcoin holders with unrealized profits.

It is often used as an indicator to identify peaks and troughs in long-term market cycles. It's currently quite high at around 95%, CryptoQuant reports.

This year's institutional inflows are likely to be as high as those in 2017 and 2021, the analysts said, adding that “stronger investments should be avoided as there may be price hikes down the road.”

In the year On February 27, CryptoQuant analysts predicted that BTC prices will rise to $55,000 to $60,000, or perhaps create a new high, “After that, the market will go into a correction, at the end of which a bull rally will begin.”

On-chain analytics platform Glassnode has noted that Bitcoin investors' risk appetite is increasing. “There are signs of increasing speculation in capital flows, exchange movements, leverage and institutional demand,” he said.

Bitcoin pioneer Anthony Pompliano says Wall Street wants Bitcoin, and there isn't enough for everyone.

For those wondering why Bitcoin is going vertical today, the answer is quite simple.

Wall Street loves orange coins, but there aren't enough for them all.

The price should increase to accommodate everyone.

— Pomp 🌪 (@APompliano) February 27, 2024

Crypto market overview

Crypto markets gained an additional 1.5% on the day to reach a 22-month high of $2.25 in total capitalization.

Since the start of 2024, crypto markets have gained an impressive 27%, with $480 billion entering the space.

Bitcoin hit a 25-month high of $57,468 in late trading on February 28 and is currently trading below $57,000. Moreover, the property has increased by 15% in the last two weeks.

Ethereum prices remained flat on the day at $3,243 at the time of writing. It's a mixed bag of altcoins, but Ripple (XRP), Dogecoin (DOGE) and Shiba Inu (SHIB) are all making strong gains.