Analyst: Bitcoin may be close to peaking, with more than 90% of BTC supply currently in profit

Odaily News Bitcoin prices have fallen 10% since hitting an all-time high on Jan. 20, the day of Trump’s inauguration. While such swings are not uncommon for a highly volatile asset like Bitcoin, analysts at BCA Research, which has been bullish on Bitcoin for the past two years, warned that the cryptocurrency may be close to a peak.
The team led by Juan Correa, BCA's global asset allocation strategist, said that the current cryptocurrency market has shown all the typical top signals, including two low-circulation meme coins launched by Trump himself. They believe that Trump's behavior of issuing coins "indicates a desire to pursue personal wealth growth rather than sharing the benefits with new buyers."
Although memecoins are not held by institutional investors and account for less than 2% of the entire cryptocurrency market, according to BCA calculations, strategists say the surge in memecoins is a precursor to a larger trend, namely that the market consensus on cryptocurrencies has become very optimistic: Bitcoin ETFs have become the most successful ETF launch in history; BlackRock CEO Larry Fink said that large investors are discussing whether to allocate 5% of their portfolios to Bitcoin. Fink even predicted that the price of Bitcoin could climb to $700,000.
“We are concerned that this frenzy of optimism is a sign that the cryptocurrency market is close to a top,” the BCA team said, noting that more than 90% of the bitcoin supply is currently in profit — a ratio that has historically been a sign of a peak in bitcoin prices. They added that eight of the top 10 financial apps by downloads are cryptocurrency trading apps.
(Golden Ten)