On-chain data shows the Bitcoin NUPL metric has now declined to lows not seen since the COVID-19 crash back in 2020.

Bitcoin Net Unrealized Profit And Loss Plunged Down Recently

As explained by an analyst in a CryptoQuant post, the NUPL past trend may suggest that current values could be favorable for a rebound in the crypto’s price.

The “net unrealized profit and loss,” or NUPL in brief, is an indicator that’s defined as the difference between the current Bitcoin market cap and its realized cap, divided by the market cap.

The “realized cap” checks what price each coin on the chain was last moved at, and using these prices it calculates the crypto’s capitalization (while the normal market cap takes the sum of all coins’ value at the current price).

What this metric tells us is whether the BTC market participants as a whole are holding a profit or a loss at the moment.

When the value of the ratio is above zero, it means the overall market is in profit currently. On the other hand, values less than zero imply holders are carrying a loss right now.

Related Reading | Bitcoin Selling Pressure Continues As Long-Term Holder SOPR Spikes Up 

Naturally, the metric being exactly equal to zero suggests the investors as a whole are just breaking even currently.

Now, here is a chart that shows the trend in the Bitcoin NUPL metric over the last few years:

Bitcoin Net Unrealized Profit/Loss (NUPL)

It seems like the value of the metric has touched into the green zone recently | Source: CryptoQuant

As you can see in the above graph, the quant has marked the different zones of the Bitcoin NUPL indicator with…


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