The price of Bitcoin (BTC) is holding solidly above $117,000, pushing more than 95% of the circulating supply into profitable territory.

According to market research and analysis firm Glassnode, this level historically marks so-called "market euphoria phases," implying that most Bitcoin holders are experiencing simultaneous profitability.

This is a phenomenon that, according to the entity, usually anticipates increases in risk and corrective movements in the BTC price, which, at the time of writing, is above USD 122,000.

The return of widespread profitability in the circulating supply of Bitcoin suggests the market is experiencing a period of high exposure. Generally, investors with accumulated profits tend to make partial sales, increasing supply pressure.

Glassnode identifies this behavior as the start of accelerated profit-taking, a pattern that has preceded price pullbacks in previous cycles.

The following chart from Glassnode shows how more than 95% of the circulating supply of Bitcoin is in profit:

  Over 95% of circulating BTC is in profit. Source: Glassnode.

Large traders, according to the same firm, have already shown signs of adjustment. Following Bitcoin's pullback from recent highs of $126,900, these players shifted from holding long positions to adopting a net short bias, indicating profit-taking and preparation for a possible correction.

This strategic shift reflects a more defensive market, in which expectations of new highs are combined with greater operational caution.

The rising share of coins in earnings increases the market's sensitivity to any change in demand. As liquidity concentrates in high-yield holdings, the possibility of flash sales increases. For Glassnode, this scenario doesn't necessarily mark the end of the bullish cycle, but rather a point where profitability stops expanding and volatility tends to increase.