Traders think Bitcoin bottomed, but on-chain metrics point to one more capitulation event

Traders think Bitcoin bottomed, but on-chain metrics point to one more capitulation event


The bull market euphoria that carried prices to new highs throughout 2021 has given way to bear market doldrums for any Bitcoin (BTC) buyer who made a purchase since Jan. 1, 2021. Data from Glassnode shows these buyers “are now underwater” and the market is gearing up for a final capitulation event. 

Bitcoin net unrealized profit/loss. Source: Glassnode

As seen in the graphic above, the NUPL, a metric tha is a measure of the overall unrealized profit and loss of the network as a proportion of the market cap, indicates that “less than 25% of the market cap is held in profit,” which “resembles a market structure equivalent to pre-capitulation phases in previous bear markets.”

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Based on previous capitulation events, if a similar move were to occur at the

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