Bitcoin News

Story: Bitcoin’s Rally Still Looks Intact, CryptoQuant Says: Here’s Why

By Maheen Hernandez

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Understanding the   Net Realized Profit/Loss Indicator. To understand CryptoQuant’s analysis, it’s important to look at how the Net Realized Profit/Loss…

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The Current Trend: A Rally With Room to Grow. According to CryptoQuant, Bitcoin’s NPL surged significantly throughout 2024, eventually reaching 5.

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Why This Matters for Investors. The implication here is that the current rally may still have more room to run.

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Looking Back: Lessons From Past Cycles. To put things in perspective, it helps to compare the current rally with Bitcoin’s previous bull…

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The Road Ahead: What to Watch. While the NPL offers encouraging signs, investors should remain cautious.

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Conclusion. Bitcoin may have slipped slightly from its all-time high, but according to CryptoQuant’s analysis,…

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The world’s largest cryptocurrency has once again found itself in the spotlight after setting a new all-time high above $126,000 earlier this month.

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Every time BTC moves on the blockchain, the NPL looks at the price at which the coins were last transacted.

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By aggregating this data across the network, analysts can estimate how much net profit or loss is being realized by investors.

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CryptoQuant’s latest focus is on the 1-year cumulative NPL, denominated in BTC, which smooths out daily volatility and highlights larger structural trends in market behavior.

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After January’s peak, however, Bitcoin prices came under pressure. The indicator fell as bearish conditions took hold, reflecting reduced profitability across the market.

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But once bullish sentiment returned, the NPL began climbing again. Now, amid Bitcoin’s latest rally to record highs, the cumulative NPL has reached 4.4 million BTC.

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Lower than the January 2025 peak of 5.1 million BTC

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Far below the October 2021 cycle high of 7.7 million BTC

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This gap suggests that profit-taking, while happening, is not at extreme levels. In previous cycles, much higher values have been observed before a market peak was reached.

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