Bitcoin’s On-Chain Profitability Has Surged With 97% of Supply Now in Profit: Glassnode

Bitcoin’s latest breakout is being fueled by institutions and steady on-chain demand rather than speculation, according to new data from ￰0￱ the Oct. 8 edition of its "The Week On-chain" newsletter , the analytics firm said bitcoin’s surge to a new all-time high near $126,000 earlier this week was powered by strong ETF inflows and consistent accumulation from smaller market ￰1￱ move pushed bitcoin into fresh price discovery before consolidating near $122,500 on ￰2￱ demand returns Glassnode said more than $2.2 billion flowed into ￰3￱ bitcoin ETFs within a single week, marking one of the strongest waves of institutional buying since ￰4￱ inflows reversed the mild redemptions seen in September and helped absorb much of the available supply on ￰5￱ firm noted that the fourth quarter has historically been bitcoin’s most favorable season, as professional investors often rebalance portfolios toward higher-risk assets such as crypto and small-cap ￰6￱ ETF demand, it added, could continue to anchor prices as year-end ￰7￱ holders drive accumulation Glassnode’s on-chain data show that mid-tier holders, or wallets containing between 10 and 1,000 BTC, have been the main buyers behind the latest leg ￰8￱ accounts have apparently steadily increased their balances while larger whales have taken moderate profits, creating what the firm described as a “more organic accumulation phase.” Nearly 97% of circulating supply is now in profit, a level that typically marks late-stage bull cycles but does not yet show signs of ￰9￱ report highlighted the $117,000–$120,000 zone as a key area of on-chain support, with roughly 190,000 BTC last transacted there — a price range where new buyers may step in if markets pull ￰10￱ adds a note of caution While Glassnode described market conditions as “robust but maturing,” it cautioned that futures open interest and funding rates have both risen ￰11￱ noted that annualized funding now exceeds 8%, suggesting a buildup of leveraged long positions that could heighten short-term ￰12￱ so, Glassnode argued that realized profits remain controlled compared with prior market tops, signaling that investors are rotating holdings rather than rushing to exit.

A structurally strong market Overall, Glassnode said bitcoin’s structure remains sound, underpinned by institutional demand, deep liquidity, and broad-based ￰13￱ firm concluded that as long as ETF inflows persist, bitcoin’s rally could extend further into the fourth quarter, reinforcing its position as the most structurally supported uptrend in years.