Recent on-chain data suggests that Bitcoin's latest price pullback is more of a market reset than a bear market. The adjusted Net Unrealized Profit/Loss (NUPL) metric shows that short-term holders are experiencing unrealized losses, while long-term holders remain in profit. Analysts highlight that significant trend damage would be evident if long-term holder NUPL falls below zero, which has not occurred.
The analysis compares Bitcoin's current drawdown to gold's post-ETF era, where increased liquidity reduced drawdown severity. This comparison suggests that Bitcoin's volatility might decrease with broader institutional access through ETFs. Despite the current pullback, the on-chain data indicates that the market is undergoing a correction driven by newer participants, while long-term holders continue to support the trend.
Bitcoin Pullback Seen as Market Reset, Not Bear Market, On-Chain Data Indicates
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