Chart of The Week: Net Unrealized Profit/Loss (BTC)

Hey guys, welcome back to Chart of the Week with Glass Node, where we run you through some of the most important charts in the world of crypto. Today I wanted to spend some time talking about net unrealized profit and loss, otherwise known as null, specifically for Bitcoin. So, what this chart represents is the overall profit and loss state of all Bitcoin holders. On average, are we in a profit or a loss? And by what degree are we at a profit or loss? So, off the bat, the easiest way for me to show you what these massive red spikes down actually represent is proximity to realized price. Realized price is essentially the average acquisition cost of all Bitcoin that is currently held. And in prior bare markets, you can see we've fallen below realized price almost every single time. Let's zoom out again. There we go. There's the 2018 bare market bottom. There's the CO flash crash. The 2022 bottom below realized price. So what you'll see is that all of these deviations below realized price show up here as massive red spikes down showing that on whole on the whole Bitcoin holders are experiencing losses. That's what these massive red spikes down mean. So if we zoom in, we can start to compare prior market cycles, prior bare markets with the current bare market we're experiencing now. Current reading on this chart is 18% roughly just shy of. So that means that on the whole the Bitcoin market is essentially still 18% in profit given its acquisition cost. Meaning we're about 18% above realized price. It's probably easiest to show you here with a linear chart. There we go. So you can see we're still about 18% above realized price there at 55K is where realized price is currently sitting. So, what that tells you is this current bare market, although it may have been painful for short-term holders, is nowhere near as bad as previous bare markets. The degree to which we have drawn down is not remotely close and the degree of losses is not remotely close. So if this is if this current bare market is to play out like it played out in the prior two bare markets or prior bare markets, we would likely go below realized price or at least visit realized price. There are some very credible arguments made by some other analysts that we will not necessarily play out the exact same way that other bare markets have. But if it does, we will essentially go below 55k according to that theory. And the degree to which this will be in loss should be worse if we go well, it'll definitely go below zero if we're below realized price, but the degree to which this should come down uh yeah, it'll worsen. So guys, I hope you guys have been surviving the bare market and taking care of yourselves. Bare markets are great opportunities to accumulate cheaper Bitcoin and get your ducks in a row. So yeah, take care guys and I will see you next time for Chart of the Week.