Bitcoin Hits Profit Milestone as Analysts Warn of Fragility from Leverage Surge

Nearly all of Bitcoin’s supply is now in profit following a recent rally, but rising leverage and institutional inflows may signal growing short-term market fragility, according to Glassnode.

Published by Ecem EFE

9 October 2025, 11:09 published Updated 9 October 2025, 11:10

Bitcoin Rally Pushes 97% of Supply into Profit — Is a Pullback to $117K Next?

Bitcoin’s latest rally has pushed nearly all of its circulating supply into profit, but onchain data suggests the market may be entering a more delicate phase marked by high leverage and increased risk, according to Glassnode analysts.

97% of Bitcoin Supply Now in Profit

Following a surge to new all-time highs, 97% of Bitcoin’s supply is currently in profit, Glassnode reported on Wednesday. This milestone reflects strong accumulation trends and signals a maturing uptrend, as nearly all BTC holders are now sitting on gains.

Rather than panic selling, however, the data shows an “orderly rotation” as investors gradually take profits and reallocate holdings. This pattern suggests a healthy bull market, where realized profits are absorbed by new demand, rather than triggering widespread distribution.

$117K Identified as Key Support Zone

Glassnode’s Cost Basis Distribution Heatmap reveals that structural support is strongest around the $117,000 level, where approximately 190,000 BTC were last acquired. While current support between $120,000 and $121,000 is limited, a pullback into the $117K region could spark renewed buying as investors defend profitable positions.

Bitcoin Hits Profit Milestone as Analysts Warn of Fragility from Leverage Surge — *Source:* *Glassnode*

Analysts note that while the market is still in price discovery, which carries the risk of short-term exhaustion, this zone represents a potential area for stabilization and momentum resurgence.

Institutional Demand Surges, But So Does Leverage

The report also highlights rising institutional interest, with U.S.-listed spot Bitcoin ETFs drawing over $2.5 billion in inflows this week alone—including the second-highest single-day inflow on record.

However, the rally is accompanied by elevated leverage and crowded call positioning, factors that introduce short-term fragility. These conditions make the market more sensitive to profit-taking and funding rate resets.

At the time of writing, Bitcoin has pulled back slightly from its mid-week high of $124,000, trading just below $122,000.