2.7 Million Bitcoin Affected By Price Drop – Is It a Buy Opportunity?
• Bitcoin’s recent price drop has caused 2.71 million BTC to become “in loss,” meaning they are worth less than what their owners paid for them.
• Glassnode data showed that the Net Unrealized Profit and Loss (NUPL) of Bitcoin was still above zero, indicating that it is undervalued despite the recent market decline.
• The Adjusted NUPL was also hovering around 0.26, further suggesting an underlying value in the current price of Bitcoin.
Bitcoin’s Price Drop Affects 2.7 Million BTC
Bitcoin’s rollercoaster ride continues as the recent price drop pushes more BTC into a loss—however, signals of undervaluation hint at a potential price surge in the future. On 11 April, the price of Bitcoin skyrocketed to the coveted $30,000 range and held steady for over a week. However, its value gradually declined, resting in the $26,000 range at press time. This downward movement of -14.6% from its local peak led to 2.71 million BTC being in an unfavorable position and incurring losses equivalent to 14% of its circulating supply.
Net Unrealized Profit and Loss (NUPL)
Analyzing the Net Unrealized Profit and Loss (NUPL) chart reveals that it began its upward trend above the zero line in January 2021 and remains above zero even now with a yellow signal indicating decreased profit levels despite market downturns. Its value stood at 0.26 which suggests there is still underlying value present within Bitcoin’s coin supply despite recent declines in prices across markets worldwide.. The adjusted NUPL (aNUPL) was calculated by subtracting inert BTC supply from circulating supply and similarly hovered around 0.26 at press time moment which points towards undervaluation of Bitcoin’s current price range despite market activity occurring throughout April 2021
Signals Of Undervaluation
Despite current drops in prices across markets worldwide leading to 2 million Bitcoins being „in loss,“ there still appears to be an abundance of unrealized profits left within its coin supply according to recently released reports by Glassnode alongside other indicators such as NUPL/aNUPL remaining above zero while providing yellow signals suggesting decreased profits which can lead to further increases or surges if these are met with favorable market activities or news events similar to those seen during early April 2021 when Bitcoin surged past $30k for a brief moment before dropping back down again below this level shortly after..
Potential For Price Surge
The report compiled by Glassnode indicated that even though prices have dropped significantly since their peak earlier this year there may still be potential for further upside movements if these conditions remain favorable or see improvement due to influxes of new investors entering cryptocurrency markets alongside positive news events like halving events scheduled later this year for some major cryptocurrencies such as Ethereum [ETH] & Litecoin [LTC]. These could potentially lead to increased demand resulting in higher prices & lower losses incurred by holders who may have entered positions prior too these dips occurring across multiple markets including Bitcoin itself…
In conclusion even though millions of Bitcoins have been pushed into losses following its surge earlier this year there are still signs pointing towards potential upsides with indicators such as NUPL/aNUPL remaining close too but mostly above zero while providing signals pointing towards undervaluation & possible surges should favorable conditions continue or improve due too external factors like new investor inflow & upcoming halving events later on this year amongst others…