Crypto News: Bitcoin, XRP, Chainlink In Spotlight, Here’s Why

As the crypto news sees increasing market interest from traders and investors, the industry looks primed for a shift in the coming days.

Crypto analytics platform Santiment shared a post on X showing massive profits in Bitcoin (BTC), XRP, Chainlink (LINK), and other digital assets in the crypto market.

The percentage of the total supply in profit was used to provide insights into the performance of these cryptocurrencies in the market at present.

Top Coin Supply in Profit Analysis

The Percent of Total Supply in Profit metric signals how much of a cryptocurrency’s current circulation is held at a profit.

It shows that these coins were acquired at a lower price than they are currently worth.

Santiment listed the supply in profit status of Bitcoin, Ethereum, XRP, Dogecoin, Cardano, and Chainlink.

Only BTC and XRP have recorded above a 98% profit band of all six. Precisely, the percentage of total supply in profit for Bitcoin is pegged at 98.4%, while that of XRP comes in at 98.3%.

These data indicate strong optimism in the broader crypto market. They also suggest potential profit-taking and a short-term price pullback.

Notably, the Santiment analysis also features Chainlink, whose supply in profit has registered up to 80.5%.

Besides LINK, the top memecoin, DOGE, has a registered supply in profit of 77.9%. Ethereum and Cardano also shared close figures of 71.5% and 71%, respectively.

Although more mining activities are taking place constantly, each of these coins will likely see a growing portion of their total supply in profit as demand matches up to scoop up the released assets.

“Since crypto supply often increases over time, using percentages avoids misleading conclusions and helps investors gauge whether a coin is relatively overbought or oversold,” the analytics platform stated

According to Santiment, the percentage of total supply in profit data is not a standalone metric.

It is enhanced with Market Value to Realized Value (MVRV), Relative Strength Index (RSI), and Network Realized Profit/Loss.

A high MVRV value for Bitcoin (greater than 3.7) indicates overvaluation, while a lower MVRV shows undervaluation.

With these gauges, investors can note how to approach the market in the face of extreme volatility and general uncertainty.

Is Bitcoin Strength Waning In the Crypto Market?

In another related update, Glassnode shared a “BTC Relative Unrealized Profit” chart.

This chart shows that Bitcoin is currently in a euphoric phase with heightened volatility and a potential for profit-taking.

Recently, it hit a new All-Time High (ATH) above $111,000, and analysts are beginning to hint at a $120,000 price level as a key resistance zone for the coin.

Sell-side pressure may rise here, judging by historical on-chain price models like the MVRV ratio and short-term holder cost basis analysis.

These metrics often spotlight overheated market conditions. Exchange activities and derivatives in crypto markets are also experiencing an increase.

About 33% of Bitcoin’s on-chain volume now has exchanges, and futures open interest has surged to $55.6 billion.

Based on the historical precedent, this indicates increased leverage and speculation.

Bitcoin, XRP, and Chainlink Price Outlook

Bitcoin price traded at $107,531.09, following a 2.57% price drawdown. Notably, the coin is marginally down from its recent new high.

Market observers are beginning to see mixed insights on the future trajectory of the flagship cryptocurrency alongside XRP, Chainlink, and other featured coins

Some experts advise that investors exercise caution, citing the current market trends and sentiment.

Others have shared bullish forecasts on the coin’s potential future performance. Overall, there are concerns about what lies ahead.

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