Bitcoin NUPL on the Rise: Optimistic Signal for the Market

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Bitcoin NUPL

Optimism seems to be prevailing in the market right now, as Bitcoin’s (BTC) unrealized net loss (which measures the net loss of an asset relative to its circulating supply) has been rising recently.

If this metric hits new all-time highs alongside a rise in BTC price, it could be a sign of a bullish trend.

According to CryptoQuant’s on-chain data, Bitcoin: Net Unrealized Profit/Loss (NUPL) stood at around 0.38.

CryptoQuant indicates the Bitcoin NUPL indicates:

Net unrealized profit/loss (NUPL) is the difference between the market capitalization and the realized market capitalization divided by the market capitalization.
Assuming that the recent coin movement is the result of purchases, NUPL represents the total amount of gains and losses across all coins as a percentage.
This can be interpreted as the percentage of investors who made a profit.
A value above ‘0’ indicates that investors are making a profit, and an increasing trend in the value means that more investors are starting to make a profit.
This stage indicates increasing selling pressure as there are more reasons to realize profits.


Additional explanation

The NUPL indicator can be used to understand the dynamics of rising and falling prices and identify the best time to buy or sell. It can also help you make investment decisions by providing objective data about market conditions during the process of adjusting your portfolio.
NUPL is the difference between market capitalization and realized market capitalization divided by market capitalization, and is used as a metric to measure the percentage of investors who are currently making a profit. A positive metric means that investors are making money, and an increasing trend indicates that more investors are entering a profitable state.

Short-term holders (those who have held for less than 6 months) with a NUPL value greater than 0 are likely to sell their Bitcoin to realize a profit, meaning that the current price is higher than the average unit price at which they purchased their Bitcoin. Conversely, if a short-term holder (holder for less than 6 months) has a NUPL value less than 0, they may sell Bitcoin to realize a loss. This means that the current price is lower than the average unit price at which they purchased their Bitcoin.


What the experts say about NUPL

NUPL / Cryptoquant
NUPL / Glassnode

Eric Huisman, Onchain Analyst

1. NUPL at .396 in yellow optimism
2. ice-cold thermocap
3. Puel somewhere between red and green
4. still dormant
BTC broke above $35,000 as expected. BlackRock Spot ETF listed on DTCC. After breaking through the $35,000 resistance level, the only way is up for now.


Onchain analyst Leon Wideman

“With the NUPL indicator rising, the market is transitioning to a more bullish phase (highlighted in yellow). We are gathering momentum. If the charts whisper the truth, the best is yet to come.”


On Coinmarketcap, BTC is trading at $34,056.51, up 11.52% from the previous day. Compared to a week ago, it’s up 19.45%. The 24-hour BTC trading volume is $47.98B. That’s a 197.73% increase overnight.


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