As Bitcoin and Ethereum continue rally, capitulation severity has lessened

meaning

Net Unrealized Gain/Loss is the difference between Relative Unrealized Gain and Relative Unrealized Loss. This metric can also be calculated by subtracting the realized market cap from the market cap and dividing the result by the market cap.

quick take

  • Bear market bottoms occur when capitulation occurs even when the strongest hands are sold due to fear in the market.
  • 2022 saw multiple surrenders on multiple occasions, including the invasion of Ukraine, Luna, and the collapse of FTX.
  • However, the sentiment turned away from capitulation when BTC broke above $20,000.
  • As you can see, each bear market bottom got higher. This suggests that capitulation among holders is less severe and may be relevant as ATH drawdowns become less severe.
Bitcoin NUPL: (Source: Glassnode)
Bitcoin NUPL: (Source: Glassnode)
Ethereum: (Source: NUPL)
Ethereum: (Source: NUPL)

Post As Bitcoin and Ethereum continue to rise, capitulation becomes less serious and first appears on CryptoSlate.

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