Bitcoin’s 11% Dip: Just a Healthy Dip or Market Meltdown? Find Out! 🚀💸

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Key Takeaways

Bitcoin’s supply loss this cycle is only 9% – a shocking contrast to the 25% in past bear markets. Seems like the recent sell-offs are more about taking profits than fleeing in terror. Or are they? 🤔

The crypto walls are still debating whether Bitcoin [BTC] has finally found a floor or just been playing hide-and-seek with the bottom. 🎭

In fact, Bitcoin’s recent dance suggests it might be gearing up for three straight daily higher closes to kick off September – a feat not seen since early August, when BTC flirted with $113k before gently strolling back up to $124k over the following two weeks. If only my weight loss efforts followed such a steady pattern. 🍰

If this trend persists, the STH NUPL might dodge the dreaded red (capitulation) zone – unlike last week’s dip under $110k, which came with nearly a billion dollars in realized losses, marking a post-April FUD peak that would make even the bravest investor say, “Maybe I should just buy more snacks instead.” 🥨

But wait – here’s the kicker.

Despite that dramatic sell-off, Bitcoin’s Net Realized Profit/Loss (NRPL) refused to turn red. Nope, it actually shot up to a one-month high, raking in $4.2 billion in net realized profits. Turns out, this isn’t your average bear market panic attack – more like a leisurely jog through profits park. 🏃‍♂️💰

Just look back to 2022, when Bitcoin plummeted by 63% and the NRPL flipped red faster than you can say “losses,” as investors hurried to sell at a loss. So, does this current divergence mean market confidence is tighter than grandma’s quilt? Well, maybe. Or perhaps traders are just feeling surprisingly optimistic for once. 🤷‍♀️

Bitcoin’s Loss Supply Signals Calm, Not Capitulation

When most sellers are sitting above their purchase price, it’s generally a bullish sign. Think of it as everyone’s just holding their breath before a big sneeze – no panic sneeze here. 🤧

But if underwater holders start dumping their coins, that’s like an invitation to chaos, capping any potential rebound and making future confidence resemble a dead battery. Luckily, right now, Bitcoin’s structure looks more like a promising date – leaning bullish at the moment. ❤️

Calculate this: at $110k, only 9% of BTC’s supply was underwater, with a mere 10% unrealized losses. For comparison, the cycle’s bottom saw over 25% of Bitcoin’s supply underwater, with losses as high as 23%. It’s like the difference between a mild hangover and a full-blown s status. 🥴

In plain English: Bitcoin’s underwater holders aren’t freaking out and selling everything in sight. Good news, right? 😅

In full bear markets, more than half the supply is underwater, with losses creeping up to 78%. But today, most BTC stays comfortably above water, and the NRPL remains green at $4.2 billion in realized profits. It’s like the crypto version of “Don’t worry, be happy.” 🎶

This signals that the rally-fire still burns bright. Investors are more like profit tigers – snatching gains, not throwing everything into the red zone. So, that 11% dip? Likely just a healthy reset, not a full-blown market meltdown. Phew! 🛋️

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2025-09-04 10:04