Bitcoin is an asset with a public ledger that allows users to get a better understanding of the analytics behind the asset. By looking into the net unrealised profit/loss, we can get an idea of the sentiment and dynamics of the market. Currently, the net unrealised profit/loss of all Bitcoins is 0.11 BTC, or $2,500. This profit has been positive since January 13th, having been negative for most of the prior 6 months. Two-thirds of the Bitcoin supply is in profit, despite prices remaining nearly 70% off all-time highs.
On-chain metrics can be used to gauge the overall sentiment of the market. Since the start of the year, there has been an uptick in profit metrics, even if prices are still a magnitude below bull market levels. It is unclear how the market will respond to macro news such as Federal Reserve loosening rates or inflation and employment numbers. The relationship between these metrics and Bitcoin can be further explored in future on-chain pieces.
