The cryptocurrency market has recently witnessed a significant uptick in Bitcoin's value, pushing over 83% of the digital currency into profitable territory, according to Glassnode data. This change comes as Bitcoin traded above $37,000 last week.

Accumulation across the board

Investor behavior has seen a notable change with the recent Bitcoin rally. The Accumulation Trend Score, which uses a 7-day Simple Moving Average to enhance data clarity, reveals a robust accumulation pattern, unlike the earlier rallies of 2023. 

Ths trend is evident in the dark colors on the chart, indicating a strong accumulation regime concurrent with a 39% price increase over the past month. A detailed analysis of different wallet sizes shows a significant rise in holdings across all investor cohorts since late October. This contrasts with the net outflows seen in several cohorts throughout much of 2023.

 The anticipation of a spot BTC ETF and the market's strong performance are key factors contributing to this optimistic outlook.

Persistent optimism 

The recent surge in Bitcoin prices has led to 83% of the total circulating supply being held in profit, a statistic significantly higher than the all-time mean of 74%. 

This level is approaching the higher standard deviation band of 90%, often associated with the early stages of a bull market's "Euphoric phase." 

On Tuesday, cryptocurrency markets experienced volatility following news of the DOJ's enforcement actions against Binacne and Chanpeng Zhao's resignation. However, Bitcoin keeps hovering above the $37,000 level.