With Bitcoin’s (BTC) price quickly re-approaching its all-time high, almost all holders of the digital currency are back in the black.

Blockchain market intelligence platform IntoTheBlock stated on Wednesday that 95% of Bitcoin addresses are now in profit – the largest share since BTC traded for roughly similar prices in November 2021.

Will Bitcoin Bull Run Continue?

Though profits are great for investors, a big portion of the market being in the green can also mean the market is overheated, and that a large number of holders may take money off the table.

95% of Bitcoin addresses are now in profit!
The last time we saw this level of profitable addresses was during the peak of the 2021 bull market, with prices over $60k pic.twitter.com/MBq95tTKAA

— IntoTheBlock (@intotheblock) February 27, 2024

IntoTheBlock recommends gauging market heat using the MVRV ratio – which measures the “market value” of all BTC against the “realized value” of when they were last traded.

“While it historically signaled a top when MVRV was close to 4, the number has declined every cycle,” the company wrote in a post to X on Tuesday. “The current value is 2.22.”

More on-chain data published by Glassnode suggests that more speculative trading activity is already starting to return to BTC. For example, Bitcoin inflows to exchanges are nearing all-time highs, with those flows predominately coming from short-term holders more likely to be interested in speculative activity.

What’s Driving Up Bitcoin’s Price?

Bitcoin’s price surged to $57,000 on Monday, breaking another two-year high as Bitcoin ETFs continue absorbing a tsunami of inflows. The newly launched funds took in another $520 million on Monday alone, with BlackRock’s iShares Bitcoin Trust scoring a record $1.3 billion in daily volume.

Several analysts believe Bitcoin ETFs will be a primary catalyst for taking the asset back to its all-time high of $69,000 – possibly before the Bitcoin network’s “halving” event in April.

This would be unprecedented for BTC, which has historically soared to new highs after – and arguably because of – the halving itself. When it occurs next, the number of BTC produced per day will fall from 900 to 450 coins.

IntoTheBlock noted this pattern, claiming the halving could “suggest a potential upswing in price.”

“This cycle deviates from the past, with prices rallying earlier than expected,” the firm added. “This could indicate that investors are anticipating and acting upon the ‘halving effect’ well in advance.”

Last week, Fundstrat’s Tom Lee predicted that both ETFs and the halving could drive Bitcoin’s price to $150,000 by the end of 2024.

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