Measures whether the overall market is in unrealized profit or loss, indicating cycle phase: Capitulation → Hope → Optimism → Belief → Euphoria.
How Net Unrealized Profit/Loss is calculated
(Market Cap − Realized Cap) ÷ Market Cap. >0.75 = Euphoria (top risk); <0 = Capitulation (bottom).
How to read it
- On-chain metrics describe holder cost basis and profit structure; they move slowly and suit cycle context, not short-term timing.
- Compare the current reading with its historical percentile and cross-check it with at least one price-structure indicator.
Limitations and common misreads
- Historical thresholds come from a limited sample; future cycles can differ.
- Data providers can define the metric differently; cite the data date when quoting it.
- A single indicator is not investment advice and does not guarantee price direction.
Related indicators
Research and education only; not investment advice.
