NUPL Analysis Shows Bitcoin Market In Healthy State Of Unrealized Profit


The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

In the November Monthly Report, we talked about the Net Unrealized Profit/Loss (NUPL) indicator showing the market in a healthy state of unrealized profit compared to previous cycles. We can further break down that indicator into short-term holder and long-term holder groups.

As for short-term holders, one of the biggest near-term concerns is that there are increasing unrealized losses in the market. As price continues to range below the short-term holder cost basis around $53,000, there’s a rising risk that more of the new buyers capitulate and sell their bitcoin at a loss, driving the price lower. This can be a bear market forming or an opportunity for holders to buy cheaper bitcoin.

Source: Bitcoin Magazine


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