The achievement of Bitcoin's new all-time high at $118,000 is generating excitement in the crypto world. However, analysts from Glassnode report an important detail that could reshape the perception of the current bull run.
What is NUPL and Why Does it Matter for Bitcoin?
NUPL, or Net Unrealized Profit and Loss, is an indicator that measures the overall profitability of the Bitcoin market. It calculates the difference between realized cap and market cap, divided by market cap, effectively showing the aggregate profit or loss of all coins in circulation that have not yet been sold. High values of NUPL indicate that a significant portion of the market is in profit, suggesting potential for profit-taking and market tops.
Glassnode’s Revelation: Is This Bitcoin Cycle Truly Different?
According to the latest report from Glassnode, even though Bitcoin has reached record-high prices, the LTH NUPL has only spent about 30 days above the 0.75 threshold, which is historically associated with market euphoria and distribution by long-term holders. In contrast, the previous bull cycle saw 228 days above this threshold, indicating a potential uniqueness of the current market phase.
The Unwavering Conviction of Long-Term Holders
Long-Term Holders of Bitcoin are individuals and entities that have endured multiple market cycles. Their conviction is a cornerstone of Bitcoin's price stability. Current data from Glassnode suggests these seasoned investors are not showing signs of widespread distribution, indicating that they may be anticipating higher price peaks in the future.
While Bitcoin has hit a new all-time high, Glassnode's report on Long-Term Holder NUPL provides an intriguing counter-narrative. The behaviors of these holders may be indicative of a more sustainable and less speculative market, leaving room for further upside.
