Bitcoin (BTC) Nears Euphoria Zone With 99% UTXOs in Profit

Bitcoin’s price rallied 50% from the April lows, hitting an all-time high of approximately $112,000 on May 23 amid renewed market momentum. On the backdrop, a key Bitcoin metric has quietly reached a level that has historically preceded major market turning points.

While the data suggests widespread unrealized gains among holders, analysts urge restraint.

UTXO Profitability Reaches Critical Level

According to CryptoQuant’s latest analysis, 99% of Bitcoin’s Unspent Transaction Outputs (UTXOs) are currently in profit. This has historically proven to be a critical threshold, previously linked to market euphoria.

UTXOs, which represent unspent BTC from previous transactions, are a key metric for gauging unrealized profits across the network.

When nearly all holders are sitting on gains, it often signals heightened bullish sentiment, a condition that can precede either sustained rallies or sharp corrections.

While the 99% mark is typically seen as a sign of strength, CryptoQuant stated that the current macroeconomic uncertainty, particularly around the Trump administration’s potential policy direction, makes it difficult to conclude that true market euphoria has arrived. As such, investors appear hesitant to embrace risk fully.

Hence, the report cautioned that if this metric begins to decline, it could indicate that unrealized profits are shrinking. That scenario could trigger increased profit-taking among earlier investors and force latecomers – those who bought near recent highs – to sell at a loss, potentially accelerating downside momentum.

Short-Term Buyer Fatigue

Glassnode also noted a concerning trend and flagged “signs of cooling momentum.” In its recent update, the platform observed that the 14-day Relative Strength Index (RSI) fell by 25.1%, and net spot demand declined, suggesting potential short-term buyer fatigue.

In derivatives markets, open interest and funding rates climbed, which indicated a growing speculative activity. Despite this, Glassnode explained that the Perpetual Cumulative Volume Delta (CVD) trending lower points to stronger sell-side pressure and more caution among traders. Options data revealed a mixed picture: while the 25-Delta Skew remained stable, rising open interest and a widening volatility spread may reflect hedging or profit-taking.

Liquidity conditions improved, supported by elevated unrealized profits and continued activity from short-term holders. Meanwhile, a slight uptick in the short-to-long-term holder (STH/LTH) supply ratio, coupled with a small dip in the Realized Profit-to-Loss ratio, signaled tempered enthusiasm over the weekend.

On-chain fundamentals showed a mild decrease in active addresses, which demonstrated a slowdown in user activity following a period of intense engagement.

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