Bitcoin NUPL Touches Lows Not Seen Since COVID Crash, Rebound Soon?

Share This Post

On-chain data shows the Bitcoin NUPL metric has now declined to lows not seen since the COVID-19 crash back in 2020.

Bitcoin Net Unrealized Profit And Loss Plunged Down Recently

As explained by an analyst in a CryptoQuant post, the NUPL past trend may suggest that current values could be favorable for a rebound in the crypto’s price.

The “net unrealized profit and loss,” or NUPL in brief, is an indicator that’s defined as the difference between the current Bitcoin market cap and its realized cap, divided by the market cap.

The “realized cap” checks what price each coin on the chain was last moved at, and using these prices it calculates the crypto’s capitalization (while the normal market cap takes the sum of all coins’ value at the current price).

What this metric tells us is whether the BTC market participants as a whole are holding a profit or a loss at the moment.

When the value of the ratio is above zero, it means the overall market is in profit currently. On the other hand, values less than zero imply holders are carrying a loss right now.

Related Reading | Bitcoin Selling Pressure Continues As Long-Term Holder SOPR Spikes Up 

Naturally, the metric being exactly equal to zero suggests the investors as a whole are just breaking even currently.

Now, here is a chart that shows the trend in the Bitcoin NUPL metric over the last few years:

It seems like the value of the metric has touched into the green zone recently | Source: CryptoQuant

As you can see in the above graph, the quant has marked the different zones of the Bitcoin NUPL indicator with different colors.

It looks like the ratio has observed some decline recently, and its value has now plunged down into the “green” zone for the first time since the COVID-19 crash.

Related Reading | More Stress For El Salvador As Bitcoin Dips To $29,000

In the history of the crypto, there have been multiple instances where shortly after the indicator has touched into this zone, the price has seen an upwards turn.

However, there is also the example of 2018, where the Bitcoin NUPL kept moving sideways in the green zone for a long while, until finally the value of the coin observed a sharp plummet, taking the market into loss.

It now remains to be seen whether this time the crypto will follow the pattern of a rebound, or if it will show a trend similar to that in 2018.

BTC Price

At the time of writing, Bitcoin’s price floats around $30.2k, down 1% in the past week.

Looks like the price of the crypto has been moving sideways around $30k recently | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

TRON DAO Supports Princeton Blockchain Club’s Crypto TigerTrek as Ruby Sponsor

PRESS RELEASE Geneva, Switzerland, October 21, 2024 – TRON DAO participated as a Ruby Sponsor at Princeton Blockchain Club’s 3rd Annual Crypto TigerTrek, a novel Princeton experience

XRP Price Suppression: Why $20 Hopes Might Just be a Pipe Dream

The post XRP Price Suppression: Why $20 Hopes Might Just be a Pipe Dream appeared first on Coinpedia Fintech News In the current bull market, XRP’s trajectory remains uncertain, especially with

SPY Token in High Demand: How SpacePay is Succeeding Where Other Cryptos Struggle

The post SPY Token in High Demand: How SpacePay is Succeeding Where Other Cryptos Struggle appeared first on Coinpedia Fintech News The goal of SpacePay is to transform how customers use

The Hottest Cryptos of the Week: Grab Them Now and Join the Millionaire’s Club by 2025!

The post The Hottest Cryptos of the Week: Grab Them Now and Join the Millionaire’s Club by 2025! appeared first on Coinpedia Fintech News The crypto market is known for changing its moving pattern

Millions Already Hold This Latam-Based Dollar Pegged Stablecoin

Mercado Libre, the Latin American e-commerce and financial services giant, has reached a milestone with meli dolar, an in-house distributed dollar-pegged stablecoin The token, launched in August, is

Japan Crypto Tax Relief: Can Tamaki’s 20% Rate Bring Positive Change?

The post Japan Crypto Tax Relief: Can Tamaki’s 20% Rate Bring Positive Change appeared first on Coinpedia Fintech News Similar to the US elections, Japan’s political leaders are too using