Tracking UTXOs is useful to get a clearer picture of the market's current state.
— UTXOs (Unspent Transaction Outputs) are the technical mechanism that ensures a single BTC can only be spent once on the blockchain. They also allow us to assess unrealized profits on all unspent BTC. —
The critical 99% threshold, meaning 99% of BTC holdings are in profit, offers a solid indication of the extent of unrealized gains.
IIt’s a level often associated with periods of market euphoria wich constitute a very bullish signal, but requires caution.
Right now, it’s hard to say we’re in a euphoric phase.
The broader macroeconomic context and the uncertainty surrounding the Trump administration’s policy direction make it difficult for investors to flip fully risk-on.
When this 99% signal drops, unrealized profits shrink and can trigger more profit-taking and push latecomers to capitulate and sell at a loss.
Stay sharp.
Written by Darkfost
