Categories: Bitcoin Latest News

Quant Explains How Bitcoin NUPL Cycles Are Getting Less Volatile With Time

Bitcoin NUPL data suggests that the crypto’s cycles are getting less sharper with time as profit tops and loss bottoms aren’t following a horizontal line.

Bitcoin NUPL Didn’t Exceed The 0.75 “Greed” Mark During This Cycle

As explained by an analyst in a CryptoQuant post, the BTC profit and loss cycles shouldn’t be treated with horizontal lines.

The “Net Unrealized Profit and Loss” (or the NUPL in brief) is an indicator that tells us whether the market as a whole is holding a net profit or a net loss right now.

The metric’s value is calculated by taking the difference between the market cap and the realized cap, and dividing it by the market cap.

NUPL = (Market Cap – Realized Cap) ÷ Market Cap

When the value of this indicator is greater than zero, it means the average investor is currently holding some profits.

On the other hand, negative NUPL values imply the overall market is holding a net amount of unrealized loss at the moment.

Now, here is a chart that shows the trend in the Bitcoin NUPL over the course of the history of the crypto:

Looks like the value of the metric has surged up and turned positive again recently Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Bitcoin NUPL data suggests that the crypto’s cycles are getting less sharper with time as profit tops and loss bottoms aren’t following a horizontal line.

Bitcoin NUPL Didn’t Exceed The 0.75 “Greed” Mark During This Cycle

As explained by an analyst in a CryptoQuant post, the BTC profit and loss cycles shouldn’t be treated with horizontal lines.

The “Net Unrealized Profit and Loss” (or the NUPL in brief) is an indicator that tells us whether the market as a whole is holding a net profit or a net loss right now.

The metric’s value is calculated by taking the difference between the market cap and the realized cap, and dividing it by the market cap.

NUPL = (Market Cap – Realized Cap) ÷ Market Cap

When the value of this indicator is greater than zero, it means the average investor is currently holding some profits.

On the other hand, negative NUPL values imply the overall market is holding a net amount of unrealized loss at the moment.

Related Reading: Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k

Now, here is a chart that shows the trend in the Bitcoin NUPL over the course of the history of the crypto:

Looks like the value of the metric has surged up and turned positive again recently

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