Once more, Bitcoin has taken a leading role in the financial markets. Its price shot up to $94,300, marking a new milestone that could be the start of a larger uptrend.
Recent data from across the blockchain ecosystem suggest that this latest price movement is more than just a short-lived relief rally. We’d seen something like that before in late 2022, and then again in early 2023.
Individual and institutional demand for Bitcoin seems to have shifted back into a higher gear. And this time, there are important differences to note that argue for this price movement being more sustainable.
A very clear signal comes from on-chain data that shows a sharp increase in the balances held by short-term traders. This segment of the market, nowadays more associated with speculative interest than ever, seems to be full throttle in returning to the crypto universe. If on-chain activity and prices keep trending up, this might actually be a sustainable rally instead of a pump clearly bound for a dump.
The returns of short-term traders have often been linked to the early phases of significant upward price movements in Bitcoin. These traders appear to react to and trade on the kinds of market price momentum that more fundamentally driven market participants would tend to ignore. In any case, the presence of these traders once again indicates that the crypto market is functioning and drawing in yet another set of high-risk, high-reward speculative investors.
Bitcoin saw an significant increase in short-term traders’ balances last week, pointing to renewed speculative demand.
If this influx persists, it supports the view that the current move is more than a relief rally and could be the opening leg of a broader uptrend. pic.twitter.com/uUfojXK4Dl
— IntoTheBlock (@intotheblock) April 28, 2025
Profitability Metrics Signal Strength
When Bitcoin hit the $94,300 milestone, investor profitability measures jumped right alongside. The “Percent Supply in Profit” measure—a gauge of how much of the existing Bitcoin supply is currently held at a profit—has shot up to 87.3%. To put this in perspective, back when Bitcoin was flirting with similar price levels much earlier this year, only 82.7% of the supply was in profit.
Profitability has not only improved but is suggesting even better things ahead. Current holders are enjoying gains, but significant shifts in supply recently suggest many new holders acquired Bitcoin near recent dip prices. It looks more and more like a ‘strong hand’ accumulation of an asset reflecting long-term confidence.
Bitcoin just pushed to $94.3K — and investor profits are surging.
Percent Supply in Profit has bounced back to 87.3%, up from the March lows.
For context: when $BTC last hit ~$94K, only 82.7% of supply was in profit.Nearly 5% of supply changed hands at lower prices — a strong… pic.twitter.com/9kl5umS42j
— Kyledoops (@kyledoops) April 28, 2025
This level of profitability is particularly noteworthy because of its close historical correlation with the start of euphoric market phases. In past market cycles, when sustained supply profitability has moved up and tested the 90% level, we often have seen that preceding massive price expansion as investor optimism turns into market-wide buying pressure.
Record ETF Inflows Reinforce Institutional Interest
Further lending weight to Bitcoin’s bullish outlook is the nonstop jackpot of capital gushing into U.S.-listed spot Bitcoin ETFs. These ETFs witnessed a net inflow of $3.06 billion during the most recently completed full trading week (April 21 to April 25, Eastern Time)—the second-highest weekly inflow on record.
During the last trading week (April 21 to April 25, ET), spot Bitcoin ETFs recorded a net inflow of $3.06 billion, marking the second-highest weekly inflow in history. Spot Ethereum ETFs ended an eight-week streak of net outflows, posting a net inflow of $157 million last week.…
— Wu Blockchain (@WuBlockchain) April 28, 2025
These figures signal a wonderful return of institutional demand. Big inflows into regulated ETFs imply that traditional finance is now quite cozy with Bitcoin, and sees it as a core portfolio asset, not a fringe, speculative play. Should these big inflows persist, they will not only prop up prices but also lend an air of legitimacy to the crypto ecosystem.
Notably, ETF inflows are not happening in a vacuum. They sit within a wider context of an uptick in retail interest, a gelling of network fundamentals, and a ramping up of accumulation behavior. You put all that together, and it’s a potent story. It’s a price appreciable story, most definitely in the short to medium term.
A Bullish Convergence of Signals
As short-term trading activity increases, supply profitability returns, and inflows into exchange-traded funds (ETFs) near record levels, Bitcoin looks to be entering what could be a very powerful bullish cycle. These three factors paint a picture of a market that’s gaining strength on several fronts.
Although the crypto world continues to be volatile and vulnerable to fast changes in sentiment, current on-chain and market data indicate that the recent price surge is underpinned by more than just optimism or sound bites. If accumulation, profitability, and institutional buying continue on their present upward course, Bitcoin might not only overcome its former all-time high but could also breach new levels of unaided price discovery in what would appear to be yet another momentum-driven bull market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/bitcoin-nears-94k-as-short-term-traders-re-enter-profitability-surges-to-87/