Data from Glassnode reveals Bitcoin holders realized 14 instances extra losses than earnings in latest weeks.
Bitcoin 7-Day MA Realized Profit/Loss Ratio Sets New All-Time Low
As per the newest weekly report from Glassnode, the realized revenue/loss ratio has assumed its lowest worth ever lately.
Whenever a coin sits idle on the chain and the value of Bitcoin adjustments, it accumulates some quantity of revenue or loss, relying upon the course of the value fluctuation.
This revenue or loss is named “unrealized” so so long as the coin holds nonetheless in the identical pockets, however as quickly because the holder strikes/sells this coin, the full quantity of revenue/loss it was carrying is then stated to be “realized.”
The realized revenue and the realized loss metrics maintain monitor of such quantities of revenue and loss being harvested by buyers throughout the BTC market.
Now, the “realized revenue/loss ratio” is an indicator that measures the ratio between the present values of those two metrics.
Here is a chart that exhibits the pattern within the 7-day shifting common of this Bitcoin ratio over the historical past of the crypto:
The 7-day MA worth of the metric appears to have been fairly low in latest days | Source: Glassnode’s The Week Onchain – Week 49, 2022
As you’ll be able to see within the above graph, the Bitcoin realized revenue/loss ratio has plunged deep beneath a price of 1 following the FTX crash.
When the indicator has values on this zone (that’s, when it’s lower than 1), it means BTC buyers are realizing a better quantity of loss than revenue proper now.
In the newest plunge, the metric not solely dropped to fairly low values, it in truth recorded a brand new all-time low. This backside degree corresponded to the loss realization being 14 instances greater than revenue realization.
From the chart, it’s obvious that deep lows like now have traditionally been noticed at or close to bottoms in earlier bear markets, which suggests they’ve all the time been on the middle of macro market regime shifts.
If the identical pattern follows this time as effectively, then the present Bitcoin market may be in the course of such a shift.
At the time of writing, Bitcoin’s worth floats round $16.9k, up 3% within the final week. Over the previous month, the crypto has misplaced 20% in worth.
The beneath chart exhibits the pattern within the worth of the coin during the last 5 days.
Looks like the worth of the crypto has been buying and selling sideways round $17k | Source: BTCUSD on TradingView
Featured picture from 愚木混株 cdd20 on Unsplash.com, charts from TradingView.com, Glassnode.com