Bitcoin Price May Be Near a Bottom, According to CryptoQuant

IconCryptoNewsTerminal Staff12 Jul, 2024

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Bitcoin Price May Be Near a Bottom, According to CryptoQuant

Cryptocurrency on-chain analytics firm CryptoQuant has stated that "Bitcoin holders are currently marking an unrealized loss of -17%, similar to the FTX collapse. This suggests that BTC may be near a bottom." The indicator used by CryptoQuant to make this assessment is called the "Unrealized Profit/Loss (UPL)." The UPL measures the difference between the current price of an asset and the price at which it was purchased. When the UPL is negative, it means that investors are holding unrealized losses. The current UPL for Bitcoin is -17%, which is the lowest it has been since the FTX collapse in November 2022. This suggests that Bitcoin holders are currently experiencing a significant amount of pain, and may be willing to sell their coins at a loss in order to realize their losses. Of course, this is just one data point, and it is not certain that Bitcoin has reached a bottom. However, it is a sign that the market is becoming increasingly bearish, and it could be a good time to start thinking about buying Bitcoin if you believe that the price is going to continue to fall.

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