In November monthly reportWe talked about the Net Unrealized Profit / Loss (NUPL) indicator, which shows the market in a healthy state of unrealized profit compared to the previous cycle. The indicators can be further divided into short-term holder groups and long-term holder groups.
For short-term holders, one of the biggest short-term concerns is the increase in unrealized losses in the market. As prices continue to fall below the short-term holder cost standard of around $ 53,000, there is an increased risk that more new buyers will lose Bitcoin and surrender and sell, lowering prices. This could be an opportunity for bear market formation or holders to buy cheaper Bitcoin.
A period of sustained short-term holder surrender stimulates the new bear market, as the purchase of new short-term holders is the main driving force for the bullish cycle. Still, in many bull market dynamics, increased unrealized losses for short-term holders are common and can be short-lived as long as long-term holders are confident that they are waiting for higher prices. I have.
This is a different story for long-term holders who are fairly comfortable and appear to be in a healthier profit state at the current price compared to the realized price (cost basis). So far, the latest price cuts have left long-term holders’ supply slightly reduced and neutral. The fact that it is currently healthy and not unduely profitable indicates that the market is on hold with widespread integration.