The Profit Status of Bitcoin Investors is Affecting the Market

Recently, the fluctuations in Bitcoin prices continue to attract the attention of investors. The Net Unrealized Profit/Loss (NUPL), which is an indicator of profit/loss for short-term investors, reveals the increasing pressure among end buyers, indicating a marked decrease in speculative movements.

On-chain data shows that short-term Bitcoin (BTC) investors are under increasing stress. According to the NUPL metric, the profit rate of this group of investors is declining, while speculative excesses in the market have begun to cool down. Analysts note that such a "cooling" period is typically indicative of a more sustainable market structure.

Historically, similar NUPL declines have paved the way for more stable price movements following periods of market overheating. The effects of this have also been observed prior to the major upward trends in 2020 and 2023. Experts evaluate the current situation as the "self-balancing process of the market."

The pressure from short-term investors may create temporary weakness in current price movements. However, in the long run, this situation is interpreted as a sign that strengthens the fundamentals of a healthier Bitcoin market. BTC investors should not forget that this process represents an important turning point for the future of the market.