San Francisco — May 21, 2025—Bitcoin (BTC) has surged above the $107,000 threshold, driven by strong buying pressure and sustained investor confidence during a recent consolidation phase just below its all-time high, according to a report published May 20 by on-chain analytics firm Glassnode.
Despite trading approximately 40% higher than six weeks ago and notching a new record with a weekly close of $106,500, Bitcoin had been range-bound between $102,000 and $105,000 over the past two weeks. The breakout reflects “robust underlying demand,” Glassnode noted, with improved investor profitability and capital inflows signaling market strength.
Widespread Portfolio Recovery Among Holders
Short-term holders (STHs)—defined as those holding BTC for less than 155 days—have seen a dramatic shift in financial health, with 71% more of their supply now in profit compared to the prior month. This marks the second-largest profitability uptick for this cohort on record.
Key metrics support the rebound:
MVRV Ratios: The overall Bitcoin MVRV ratio rose from 1.74 to 2.33, indicating unrealized gains increased from 74% to 133%. The STH MVRV shifted from 0.82 (18% unrealized loss) to 1.13 (13% gain), while long-term holders (LTHs) saw their MVRV rise from 2.91 (191% gain) to 3.30 (230% gain).
Realized Profits: STHs locked in $11.4 billion in profits over the past 30 days, up from $1.2 billion in the prior period. Daily realized profits peaked at $747 million as BTC surpassed the STH cost basis of $93,000.
“These metrics reflect broad-based portfolio improvements and heightened investor confidence,” Glassnode stated.
Balanced Profit-Taking and Demand
While profit-taking has intensified, the market has absorbed selling without major disruptions. The STH Realized Profit/Loss Ratio spiked to levels exceeding 92% of historical trading days, a sign typically seen in bullish phases or near rally exhaustion. However, the Sell-Side Risk Ratio— which measures whether holders are exiting at gains or losses—remains well below historical peaks, indicating profit-taking has not overwhelmed new demand.
Bitcoin’s Realized Cap, a measure of the total capital stored in the network based on each coin’s last transaction price, hit a record $900 billion, up 4.2% in the past month. This steady accumulation suggests sustained institutional and retail participation.
Healthy Bull Market Signals
Glassnode concluded that Bitcoin is in a “healthy bull market phase,” characterized by:
Reduced unrealized losses across holder cohorts.
Structured profit-taking that does not disrupt price momentum.
Sustained capital inflows supporting new all-time highs.
“While caution is warranted amid elevated profitability metrics, the current balance between gains realization and demand signals a mature market rally,” the report stated.
As BTC continues to test new highs, analysts will monitor whether institutional inflows and retail participation can sustain momentum in the coming weeks.
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