# NUPL (Net Unrealized Profit/Loss)

{% embed url="<https://youtu.be/n0EiYVAGwYE?feature=shared>" %}

## Indicator Overview

Profit and Loss metrics answer the question: *if all units of a given currency were sold today, how much would investors stand to gain or lose?*

By looking at the delta between the price when a [UTXO](https://docs.glassnode.com/on-chain-concepts/utxo-vs.-account-based-chains#utxo-unspent-transaction-output-chains) was created vs. the current price of an asset, we can determine whether the specific coins in that UTXO are in a state of unrealized profit (price has increased) or loss (price has decreased). When looking at this across the entire network, we can see how much of the network is in profit, and how much is in loss.

NUPL (Net Unrealized Profit/Loss) specifically looks at the difference between [Unrealized Profit](https://docs.glassnode.com/guides-and-tutorials/metric-guides/unrealized-profit-loss/unrealized-profit) and [Unrealized Loss](https://docs.glassnode.com/guides-and-tutorials/metric-guides/unrealized-profit-loss/unrealized-loss) to determine whether the network as a whole is currently in a state of profit or loss.

Any value above zero indicates that the network is in a state of net profit, while values below zero indicate a state of net loss. In general, the further NUPL deviates from zero, the closer the market trends towards tops and bottoms. As such, NUPL can help investors identify when to take profit (blue) and when to re-enter (red).

<figure><img src="https://2190898932-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Ldi5WtVBeQ2iFbdqJ1a%2Fuploads%2Fgit-blob-8823f0ac6fe6bb5391d8fae9d0d313dffce9ffcd%2F1.png?alt=media" alt="Bitcoin: Net Unrealized Profit/Loss"><figcaption></figcaption></figure>

* [View NUPL in Glassnode Studio](https://studio.glassnode.com/metrics?a=BTC\&m=indicators.NetUnrealizedProfitLoss)
* [View NUPL in Glassnode API Docs](https://docs.glassnode.com/basic-api/endpoints/indicators#net-unrealized-profit-loss)

## How is it measured?

Net Unrealized Profit/Loss is the difference between Relative Unrealized Profit and Relative Unrealized Loss. It can also be calculated by subtracting [realized cap](https://docs.glassnode.com/guides-and-tutorials/metric-guides/realized-capitalization) from [market cap](https://docs.glassnode.com/guides-and-tutorials/metric-guides/market-capitalization), and dividing the result by the market cap.

$$
\begin{align\*} \textrm{NUPL} &= \textrm{Relative Unrealized Profit} - \textrm{Relative Unrealized Loss} \\\[0.5em] &= \frac{\textrm{Market Cap} - \textrm{Realized Cap}}{\textrm{Market Cap}} \end{align\*}
$$

## NUPL interactive guide

{% embed url="<https://app.arcade.software/share/y2W2tRm5jVbDpQ0FwyG1>" %}
Dive deeper with our quick start guide
{% endembed %}

## About

### Created By

[Tuur Demeester](https://twitter.com/TuurDemeester), [Tamás Blummer](https://twitter.com/tamasblummer), and [Michiel Lescrauwaet](https://twitter.com/MLescrauwaet)

### Date Created

February 2019

## Further Resources

Tuur Demeester, Tamás Blummer, and Michiel Lescrauwaet - [A Primer on Bitcoin Investor Sentiment and Changes in Saving Behavior](https://medium.com/@adamant_capital/a-primer-on-bitcoin-investor-sentiment-and-changes-in-saving-behavior-a5fb70109d32)

Rafael Schultze-Kraft - [Dissecting Bitcoin's Unrealised On-Chain Profit/Loss](https://medium.com/glassnode-insights/dissecting-bitcoins-unrealised-on-chain-profit-loss-73e735020c8d)