Bitcoin’s unrealized losses fall to a three-month low as its price approaches $100,000.

On May 7, the net unrealized loss (NUL) for Bitcoin declined to 0.0034, marking its lowest point since February 20, coinciding with BTC reaching an intraday peak of $97,731.

These minimal unrealized loss levels indicate that the vast majority of Bitcoin held within the network is either at a profit or breaking even, leaving only a tiny portion of the total supply in the red.

Throughout 2025, the NUL has lingered above the current 0.0034 figure for 102 out of 127 days. This signifies that for over 80% of the year, typical Bitcoin investors have been facing larger unrealized losses than they currently experience.

The gradual reduction in unrealized losses has been observed as Bitcoin increased from $94,360 on the first day of the year to a peak of $106,160 on January 21, before experiencing a downturn to a low of $76,270 on April 8.

On February 20, when NUL last registered lower, Bitcoin’s daily price reached $98,770, suggesting that the current market behavior mirrors the final stages of the February surge.

The drop back to these minimal unrealized loss figures holds significant structural implications. Historically, when NUL is high, investors often exit to prevent further losses, leading to price declines.

With NUL currently low, the usual selling pressures are absent. Consequently, any selling activity must arise from profit-taking or external factors, rather than from forced sales by investors trying to minimize losses. This development enhances the potential risk-reward balance for Bitcoin, particularly as it nears the $100,000 mark.

However, this situation also indicates that significant price increases may necessitate new investment inflows or a change in market sentiment since there isn’t currently a strong demand from those facing unrealized losses.