Half of Bitcoin is held with unrealized net profit

On the 6M and 1Y presentation, the Bitcoin price chart screams “crypto winter.” Last November, it was valued at $68,000, but since mid-June this year it has hovered around the $20,000 level. But today, just over half of the owners have unrealized net profits on hand.

The price of Bitcoin rose sharply last week, starting on Wednesday. The proof-of-work king posted a double-digit gain at the peak of the boom on Friday and has continued to climb ever since. After recovering above the $20,000 level this week, bitcoin price action has dumped $160 million from the bitcoin shorts.

But even before this rally, nearly 50% of bitcoin holders were making positive or unrealized gains. It is according to a series called Net Unrealized Profit or Loss (NUPL).

Bitcoin held in unrealized win matches held at loss

“Unrealized” simply means that this action is for those who did not sell. It is a measure of whether they will win or lose if They were sold at the current average market price.

As of Wednesday last week, before the sudden surge in bitcoin prices this week, 47%, or roughly half of all bitcoin holders, were making a profit in their hands, according to some estimates. At this point, this number is even higher.

Another estimate from earlier this week, based on an analysis of CryptoQuant data, pegs this ratio by a narrower margin, with NUPL at -0.07.

NUPL describes whether Bitcoin holders have a profit or a loss on their hands. When the number is positive, more investors get unrealized gains and when the number is negative, more investors experience unrealized losses.

With this number very close to 0, the percentage of bitcoin held at a profit is almost as large as that held at a loss if the owner were to sell on the day the scale was taken.

7-day BTC addresses saved at a loss

GlassNode data also shows the number of losing bitcoin addresses over the course of 7 days swinging sharply to parity with profitable coins during late August and into this month.

Meanwhile, long-term contract holders are clinging to their bitcoin and moving it from liquid exchanges to custodians. The SAXO Markets report at the beginning of the month indicated that:

“In August, bitcoin exchanges experienced a net withdrawal. About 9% of the total supply now remains on the exchanges compared to 12% at the beginning of the year. The decline in the balance of the coin is usually associated with a decrease in potential selling pressure.”

Back in March, with a sharp capitulation to the Bitcoin price below the November-January prices and with significant resistance, only 40% of its owners were under water.

The published halving of Bitcoin held at a net unrealized profit first appeared on CryptoPotato.

Leave a Comment