Understanding #bitcoin URPD Indicator for Market Analysis

AI Summary

According to BlockBeats, the article explores the URPD indicator, a tool used in on-chain data analysis to understand Bitcoin's price distribution across different holding costs. URPD, or UTXO Realized Price Distribution, leverages Bitcoin's unique blockchain structure to provide insights unavailable in traditional financial markets. This indicator allows analysts to observe the distribution of Bitcoin holdings at various price levels, effectively showing the purchase cost of each Bitcoin.

The URPD indicator is instrumental in analyzing the turnover, accumulation, and distribution of Bitcoin holdings. By examining daily changes in URPD, analysts can track how Bitcoin chips are exchanged at different price levels. For instance, comparing URPD charts from May 1 and October 1 reveals a noticeable distribution of low-cost chips following a period of price fluctuation.