The Entity-Adjusted Net Unrealised Profit/Loss metric exposes the unimpressive state of market sentiment in the Bitcoin market. As per the metric, the BTC market has slipped from a positive outlook to a negative one. Here is what you should know about the current Bitcoin market sentiment situation.
Bitcoin’s NUPL Shows Growing Market Uncertainty
Before we proceed further, let me give you an idea of what this NUPL metric actually stands for. It is nothing complicated, but just a simple metric that helps track how much profit or loss Bitcoin holders are sitting on.
The Entity-Adjusted NUPL is a variant of the aforementioned metric. What allows it to stand out is the fact that it focuses only on external economic activity, excluding internal transactions almost completely.
A Bitcoin Entity-Adjusted NUPL chart, published in CryptoSlate, shows that the metric has been steadily dropping since mid-2024.
What we can interpret from the chart is simple: the Bitcoin market sentiment has weakened sharply in the last couple of months.
Bitcoin Entity-Adjusted NUPL Chart: An Overview
In the beginning of the year 2024, the metric was in positive territory, indicating that at that stage most BTC holders were in profit. The market situation has turned upside down since then. At present, the metric remains very close to loss levels. It clearly suggests that many investors are suffering from the threat of reduced profitability.
What’s Next for Bitcoin
In the past, several times, the market faced similar situations. In the majority of those situations, it acted as an early signal for an upcoming consolidation phase. In 2017 and 2021, the market saw how bad it could become.
In conclusion, we can say that the current market sentiment is not completely favorable towards the Bitcoin market. What the Entity-Adjusted NUPL metric reveals is enough to create confusion among BTC investors, who are expecting a strong bullish momentum in the market this month.
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