According to recent data from Santiment, a significant portion of the circulating supply of major cryptocurrencies is in profit. However, experts warn of potential risks associated with profit-taking in the short term.
BTC and ETH: Leaders in Profit
Currently, 94.5% of Bitcoin (BTC) holders and 88.7% of Ethereum (ETH) holders are in profit. Santiment highlights that amidst this optimism, the likelihood of profit realization is increasing. 'When 19 out of 20 BTC are in profit, the probability of investors realizing profits increases,' the firm noted. This could lead to waves of selling in the market.
ADA: Potential and Risks
In contrast to BTC and ETH, Cardano (ADA) shows more modest results, with only 46.5% of its supply in profit. This means that more than half of ADA investors are currently at a loss, which may signal undervaluation of the asset if the core concepts of the network remain unchanged. 'Assets where a large portion of supply is underwater can signal potential opportunity zones,' Santiment added.
Overall Trends in Cryptocurrency Market
As cryptocurrency prices rise and potential overvaluation risks emerge, investor behavior regarding profit-taking and rotation into lagging altcoins may shape the next phase of the market.
Overall, the current situation in the cryptocurrency market indicates high levels of profitability among Bitcoin and Ethereum holders, yet emerging signals about increased profit-taking could suggest shifts in sentiment among investors in the near future.
