Bitcoin NUPL Metrics: Signs of an Impending Market Crisis

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Bitcoin’s NUPL Shows Growing Market Uncertainty
  2. Bitcoin Entity-Adjusted NUPL Chart: An Overview
  3. What’s Next for Bitcoin


    4. The Entity-Adjusted Net Unrealised Profit/Loss (NUPL) metric exposes the unimpressive state of market sentiment in the Bitcoin market. As per the metric, the BTC market has slipped from a positive outlook to a negative one.

    Bitcoin’s NUPL Shows Growing Market Uncertainty

    Before we proceed further, let me give you an idea of what this NUPL metric actually stands for. It is nothing complicated, but just a simple metric that helps track how much profit or loss Bitcoin holders are sitting on. The Entity-Adjusted NUPL is a variant of the aforementioned metric. What allows it to stand out is the fact that it focuses only on external economic activity, excluding internal transactions almost completely. A Bitcoin Entity-Adjusted NUPL chart, published in CryptoSlate, shows that the metric has been steadily dropping since mid-2024. What we can interpret from the chart is simple: the Bitcoin market sentiment has weakened sharply in the last couple of months.

    Bitcoin Entity-Adjusted NUPL Chart: An Overview

    In the beginning of the year 2024, the metric was in positive territory, indicating that at that stage most BTC holders were in profit. The market situation has turned upside down since then. At present, the metric remains very close to loss levels. It clearly suggests that many investors are suffering from the threat of reduced profitability.

    What’s Next for Bitcoin

    In the past, several times, the market faced similar situations. In the majority of those situations, it acted as an early signal for an upcoming consolidation phase. In 2017 and 2021, the market saw how bad it could become. In conclusion, we can say that the current market sentiment is not completely favorable towards the Bitcoin market. What the Entity-Adjusted NUPL metric reveals is enough to create confusion among BTC investors, who are expecting a strong bullish momentum in the market this month.

    Thus, the current state of the Entity-Adjusted NUPL metric points to growing concerns in the Bitcoin market. Investors should take this into account when making BTC-related decisions.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Germany's Sparkassen Group Begins Cryptocurrency Trading Rollout

Germany's Sparkassen savings bank group is starting a phased rollout of cryptocurrency trading within its existing banking app, beginning on October 19, 2023.

user avatarGustavo Mendoza

CME Group to Launch Bitcoin Cash and Uniswap Futures on October 19

CME Group has scheduled the introduction of Bitcoin Cash and Uniswap futures for October 19, providing institutional traders with more cryptocurrency markets.

user avatarRajesh Kumar

Ethereum's Glamsterdam Upgrade Scheduled for Hoodi Test Network

Ethereum's next major upgrade, Glamsterdam, is set to activate on the Hoodi test network on October 26, marking a significant step in testing changes to block production and execution costs.

user avatarMiguel Rodriguez

International Crackdown on West African Scam Networks Results in 28 Arrests

An international effort against West African scam networks has led to 28 arrests and the removal of over 37 million accounts linked to fraudulent activity.

user avatarLuis Flores

Stablecoin Payment Transactions Surge Despite Flat Supply

A new report reveals a significant increase in stablecoin payment transactions, contrasting with stagnant supply levels.

user avatarArif Mukhtar

MARA Holdings Transfers 1,000 BTC to Exchanges Amid Market Scrutiny

MARA Holdings has transferred approximately 1,000 BTC to Binance and Gate over the past five days, raising questions about its treasury movements.

user avatarDavid Robinson

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.