As the prices of major cryptocurrencies turned green on Wednesday, Bitcoin has restored profits to investors who were previously in losses, according to recent data from Glassnode.

After flashing mixed signals amid recurring market corrections, the crypto market has resumed a steady rally, pushing Bitcoin (BTC) above $97,900, the highest level seen in over two months.

Market skepticism fades

Amid the recent downtrend in the broader crypto market, on-chain statistics have highlighted weakening investor confidence, with many fearing the start of a new bear market.

While major Bitcoin investors remained bullish, there were growing concerns among retail investors about the possibility of Bitcoin falling further, fostering a mix of confidence and skepticism across the board.

However, Bitcoin’s recent surge toward the $98K mark has restored optimism. As of press time, the leading cryptocurrency is trading at $96,554.93, representing a 2.18% increase over the last 24 hours, according to data from CoinMarketCap.

This strong price performance has brought over 3 million previously out-of-the-money BTC back into profit, boosting investor morale.

Short-term holders see relief

Glassnode data further indicates a sharp reduction in unrealized losses among short-term Bitcoin holders.

This suggests that a significant number of investors who recently entered the market are now back in the green after enduring price slumps in previous weeks.

While the specific cause of the latest rally remains unclear, several contributing factors are likely at play, including macroeconomic influences, increased retail and institutional interest, and a broader shift toward bullish sentiment in the market.

Notably, the recovery in Bitcoin’s profitability extends beyond just short-term holders. Institutional investors have also seen improved returns as U.S. spot Bitcoin ETFs report renewed inflows following the BTC price resurgence.

With momentum building, the much-anticipated $100K resistance level now appears closer than ever, bringing renewed excitement and relief to market participants.