Bitcoin targets $200K as profit metrics enter a 'cautiously optimistic' zone . This comes as Bitcoin's 98% supply in profit signals bullish sentiment but warns of volatility and potential price corrections .
Analysts predict BTC could hit $200,000 by the end of 2025, but sustained demand is key . Bitcoin supply in profit rose sharply to 98% from 87% between June 22 and June 29, according to onchain data resource Glassnode . As of July 1, approximately 96.65% of all Bitcoins are in profit .
Historically, such elevated levels lead to market volatility as the potential for profit-taking grows, reflecting bullish sentiment but with caution for price corrections . Between January and April, for instance, BTC price fell to $74,000 from around $109,000, a drop preceded by Bitcoin's profitable supply rising to as high as 98.77% on Jan. 21 .
Profitability data reflects these bullish albeit cautious market conditions . For instance, Bitcoin's realized profit/loss ratio jumped to 2.8 from 1.1 since June 22, exceeding the high band threshold of 2.4, a 156.4% rise . While this “reflects strong market confidence, it hints at heightened risk of profit-taking and demand exhaustion if price momentum falls,” Glassnode analysts said in their latest Weekly Market Pulse report .
“The market looks to have entered a cautiously optimistic regime, with stronger positioning from institutional players and renewed accumulation,” Glassnode explained, adding: “For this rally to sustain, continued demand and broader market confidence will be essential” .
Several analysts have predicted that Bitcoin's price could reach between $180,000 and $250,000 by 2025 . Others, such as Ark Invest's Cathie Wood, are even more bullish, projecting $1.5 million by 2030 .