Coinbase and Glassnode say crypto markets may be forming a near-term bottom as macro conditions improve, though the firms warn that Middle East developments keep short-term uncertainty elevated.
Why it matters
Bitcoin's Net Unrealized Profit/Loss (NUPL) has rotated from the Fear stage into Optimism, a shift that historically marks the transition from capitulation to accumulation. Sentiment is backing it up: 75% of institutional and 71% of non-institutional investors surveyed now view BTC as undervalued, a spread that suggests the bid is broad-based rather than concentrated in one cohort.
Market impact
The Ethereum side of the report adds a supply-side confirmation. Short-term ETH holdings (under three months) fell 38% in Q1, while long-term supply (held over a year) rose 1%, pointing to coins migrating from speculative wallets into longer-duration hands. The combination of improving sentiment, an on-chain bottom signal on Bitcoin, and Ethereum supply maturing is the kind of cross-asset alignment that bottoming processes typically require — though the report's authors caution that macro and geopolitical catalysts still hold the keys to a confirmed breakout.
Frequently asked questions
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What did the Coinbase and Glassnode report say about a crypto bottom?
The report said crypto markets may be forming a near-term bottom as macro conditions improve, while cautioning that Middle East developments keep short-term uncertainty elevated.
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What is Bitcoin NUPL and why does it matter?
NUPL (Net Unrealized Profit/Loss) has rotated from the Fear stage into Optimism, a shift that historically marks the transition from capitulation to accumulation in BTC cycles.
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What percentage of investors now see Bitcoin as undervalued?
According to the report, 75% of institutional investors and 71% of non-institutional investors surveyed view BTC as undervalued.
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What happened to Ethereum supply in Q1?
Short-term ETH holdings (under three months) fell 38% in Q1, while long-term supply (held over a year) rose 1%, indicating coins moved from speculative wallets into longer-duration hands.
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What risks could prevent a confirmed crypto bottom?
The report highlights macro conditions and Middle East developments as the main short-term catalysts that could delay or invalidate a confirmed breakout from the bottoming process.
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