According to @AxelAdlerJr, on-chain metrics show a significant boost in Bitcoin profitability since the recent $74K low. The overall MVRV ratio has climbed from 1.74 to 2.33, reflecting a jump in average market participant profitability from +74% to +133%. Short-term holder (STH) MVRV has shifted from a -18% loss to a +13% gain, indicating short-term traders are now in profit, while long-term holder (LTH) MVRV increased from 2.91 to 3.30, or +191% to +230%. These rising profit margins across all cohorts are driving renewed market confidence and are a strong technical indicator supporting the ongoing BTC rally. Traders should monitor these MVRV ratios closely as elevated profitability often correlates with increased investor confidence and can signal possible continuation or reversal points in the crypto market. (Source: @AxelAdlerJr, Twitter)

According to glassnode, Bitcoin's MVRV Ratio has reverted to its long-term mean of 1.74, a historically significant level often linked to consolidation phases in the market. This pullback indicates a cooling of unrealized gains, much like the reset witnessed during the August 2024 unwind, and suggests that if the 1.74 level is maintained, it could act as a crucial support zone for traders monitoring entry and exit points (source: glassnode, May 5, 2025).