According to PANews, CryptoQuant analyst Yonsei_dent has highlighted that the Net Unrealized Profit/Loss (NUPL) indicator suggests most cryptocurrencies are in a profitable state when the value is above zero, potentially leading to profit-taking.
Historically, market cycle peaks have coincided with NUPL highs. The market saw a peak in 2017, two peaks in 2021, and the current cycle may be forming a third peak. Unlike previous cycles, this market fluctuation is more stable, primarily influenced by institutional funds such as U.S. ETFs. Despite the increased stability, the magnitude of each rise is diminishing, indicating that while the bull market may last longer, the likelihood of rapid surges in the short term is lower.
