99% UTXO profitable: Is the market about to enter a bullish phase?

According to CryptoQuant, currently 99% of UTXO are in profit, a potential sign of excitement in the market. UTXO (Unspent transaction output ) is the technical mechanism that ensures each BTC can only be spent once and helps assess the unrealized profit of unused BTC.

The threshold of 99% unrealized profit is often associated with a market exuberance phase, which is a very positive signal but also requires caution. However, it is currently unclear whether the market has entered a phase of exuberance due to the complex macroeconomic context and unclear policies from the Trump administration, causing investors to maintain a cautious mindset.

If this ratio decreases, unrealized profits shrink, it may trigger strong profit-taking sales and push investors into a panic selling state with losses.