The Bitcoin PnL Index, according to data on the blockchain, is currently in transition. This phase has traditionally led down into a bottom but not right away.
Bitcoin PnL Index is declining Recently
The new post Maartunn, a community analyst at X has discussed the Bitcoin trend. PnL IndexThis indicator is derived from the combination of several key metrics that are available on BTC’s blockchain.
MVRV Ratios, NUPLs, and the LTH/STHSOPR are all metrics. The two first metrics deal with the unrealized losses and gains of investors while the final one deals with the profits/losses of holders.
Here is a chart that Maartunn shared showing the trends in the 365 day moving average (MA), of the Bitcoin PnL Index, over the entire history of cryptocurrency.
According to the graph shown above, the 365 day MA of the Bitcoin PnL Index is in a downward trend since Q4 2025. It reflects a bearish market.
So far, the indicator hasn’t left the positive territory, which suggests that, at least from the perspective of the metric, the cryptocurrency hasn’t yet become “undervalued.”
In the chart, it’s visible that historical bear market The PnL Index usually drops into the negative zone when the bottoms occur. Given this, it’s possible that a similar trend will play out in this cycle as well.
Keep in mind that this cycle is different from previous cycles. bull market phase. In previous cycles, the PnL Index tended to peak at the same time as the top of the stock market. In this cycle, two peaks of similar size were formed alongside the tops for Q1 2025 and Q4 2020.
As such, it now remains to be seen how the indicator’s trajectory will look by the time this bear market has played out and whether it will be anything like that seen in the previous cycles.
As an analyst pointed out in a recent X article, Bitcoin’s short-term holders (STHs) have suffered a severe loss due to the recent price decline. post.
STH Whales are BTC holders who have at least 1,000 tokens on their phone and bought the crypto within the last 155 days. This chart shows what the investors’ net gain/loss is at this moment.
“Short-Term Holder Whales are now sitting on -$16.4B in unrealized P&L, the deepest level of stress seen in this cycle,” noted Maartunn.
BTC price
Bitcoin’s price is currently hovering around $61,700. This represents a drop of over 6% from the previous seven days.
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Source: www.newsbtc.com
