Bitcoin recorded a remarkable one-day candle as it climbed to a new yearly high of $64,000 on Feb. 28. The overall price surge โ up 20% increase in just three days โ puts Bitcoin tantalizingly close to its highest monthly close in history. However, amid the euphoria lies a critical metric that could shape the near future of Bitcoin's market trajectory โ the Net Unrealized Profit/Loss (NUPL) and its refined counterpart, adjusted-NUPL (aNUPL). These insights offer a glimpse into the market's current state of profitability, painting a picture of widespread gains amongst Bitcoin holders. As we stand on the precipice of potential further growth, the question arises: Will this state of profitability lead to reduced selling pressure and a stable price increase, or could the urge to realize gains amid rising fears trigger volatility?
The Bitcoin market faces a critical moment amid soaring unrealized profits The Bitcoin market faces a critical moment amid soaring unrealized profits
Spot ETF inflows and bullish sentiment buoy Bitcoin, despite potential volatility from unrealized gains.
3 min read
Updated: Feb. 28, 2024 at 7:35 pm 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.
