• The latest on-chain metrics and investor behavior suggest the crypto market may be ready for the next bull run.
• Bitcoin’s Spent Output Profit Ratio (SOPR) and Net Unrealized Profit and Loss (NUPL) indicators have moved into the green, showing that almost all BTC trades have been profitable since it breached the $29,500 mark.
• The SOPR has been above one for roughly two weeks since bitcoin soared past the $29,500 level.
Signs of a Bull Run
A new report by cryptocurrency exchange Bitfinex revealed that the latest on-chain metrics and investor behavior suggest the crypto market may be ready for a bull run. On-chain data indicates strong buying interest absorbed by limit sell orders, which has formed a balance that could determine Bitcoin’s trajectory.
Spent Output Profit Ratio
Bitcoin’s Spent Output Profit Ratio (SOPR) indicates that investors are confident in their spot positions and do not have to sell at a loss. They are keen on future price appreciation and believe their positions would either realize partial profits now or hold for higher returns later. If SOPR is less than one, then market participants expect future losses rather than gains from trading activity.
Net Unrealized Profit & Loss
The Net Unrealized Profit & Loss (NUPL) indicator also shows that almost all BTC trades have been profitable since it breached the $29,500 mark. This suggests that investors still believe in Bitcoin’s long term potential as they haven’t sold off their holdings yet despite its current high prices.
On-chain data further indicates strong buying interest being absorbed by limit sell orders creating a balance that could determine Bitcoin’s trajectory in the near future. As such, these continuing bullish signals could indicate an imminent bull run in the crypto markets with much higher prices ahead of us soon enough.
Overall, it appears that Bitcoin is showing signs of another potential bull run based on its recent performance in terms of both its SOPR and NUPL indicators as well as buying interest from investors who are still confident about its long term prospects despite its high prices today.