Bitcoin NUPL indicator has sharply dropped in value recently, a trend that may signal the start of the early bear market period. After The Crash, Bitcoin NUPL Value Has Declined To 32.5% According to the latest weekly report from Glassnode, the BTC NUPL’s recent trend may suggest that the early bear market is now beginning. The “Net Unrealized Profit and Loss” (or NUPL in short) is an on-chain indicator that measures the difference between the relative unrealized profit and the relative unrealized loss. NUPL = (Market Cap – Realized Cap) / Market Cap In simpler terms, what this metric tells us is whether the Bitcoin market as a whole is currently in a state of profit or of loss. The indicator works by looking at each coin on the chain and checking whether its current price is lower or higher than the price it was bought at. When the NUPL value is above zero, it means the overall Bitcoin network is currently in profit. On the other hand, negative values imply investors are, on average, in loss at the moment. Historically, the more the indicator has deviated from zero, the closer the price has been to a top or a bottom (depending on which way of zero the metric currently points). Related Reading | Following Crash, Bitcoin Open Interest Declines To Sept 2021 Levels Now, here is a chart that highlights the trend in the Bitcoin NUPL over the history of the coin: Looks like the metric's value has sharply...
