Entity-adjusted Bitcoin metrics offer a more refined view of market sentiment by filtering out non-economic transactions, such as internal transfers within the same entity, which can skew data. In particular, metrics like LTH-NUPL and STH-NUPL are crucial for understanding net unrealized profit and loss among long-term and short-term holders. This becomes pivotal in predicting market tops and bottoms. For instance, the LTH-NUPL crossing above 0.7 typically signals the onset of a euphoria or greed phase, frequently indicating... [Read more about whatโs next for Bitcoin holders and market trends on Alpha.]
NUPL ratio shows why long-term holders are better market top indicators NUPL ratio shows why long-term holders are better market top indicators
Robust confidence of long-term holders contrasts with short-term market swings.
3 min read
Updated: Aug. 1, 2024 at 1:40 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
