On 6M and 1Y view, Bitcoin price chart flashes ‘crypto winter’. Last November, he had $68,000. However, as of mid-June this year, its range is around $20,000. But today, just over half the holders have net unrealized gains.
The price of Bitcoin rose sharply last week, starting on Wednesday. The PoW king saw a double-digit percentage gain at the height of the boom on Friday and has continued to climb ever since. After rallying above the $20,000 level this week, Bitcoin price action topped $160 million worth of bitcoin shorts.
But even before this rally, nearly 50% of BTC holders were in positive or unrealized profit territory. This is according to an on-chain metric called Net Unrealized Profit or Loss (NUPL).
Bitcoin was held in unrealized profit held at a loss
“Unrealized” just means that this metric is for those who haven’t sold. It is a measure of whether they will win or lose if they sold at the current average market price.
As of Wednesday last week, just before the week’s bitcoin price spike, 47% or nearly half of bitcoin holders had a profit on hand, according to some estimates. So far, that number is even higher.
Another estimate from earlier this week, based on CryptoQuant data analyses, pegs that rate at an even narrower margin, with NUPL at -0.07.
NUPL describes whether Bitcoin holders have profits or losses in their hands. When the number is positive, more investors are holding unrealized gains and when it is negative, more are holding unrealized losses.
With this number so close to 0, the percentage of bitcoin held at a profit is almost equal to that held at a loss if the holder were to sell on the day the measurement was taken.
7-day BTC addresses held in loss decreased
GlassNode data also shows the number of 7-day bitcoin addresses held at a loss sharply rising to parity with the profitable coin in late August and into this month.
Meanwhile, long-term holders are hanging on to their BTC and moving it out of liquid exchanges to keep in storage. A SAXO Markets report earlier this month noted that:
“In the month of August, Bitcoin exchanges experienced a net withdrawal. About 9% of the total supply now remains on exchanges compared to 12% at the start of the year. A lower foreign exchange balance is usually associated with a reduction in potential selling pressure.”
Even in March, with the price of bitcoin in sharp capitulation from November – January prices and facing massive resistance, only 40% of holders were underwater.
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