Bitcoin Realized Losses Going Down, But Still At Significant Value

Keshav Verma

Last Updated: June 11, 2024 11:33 am

3 mins read

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Data shows the net amount of losses being realized in the Bitcoin market is going down, but nonetheless remains at a high value.

Bitcoin Net Realized Profit/Loss Still Has A Pretty Negative Value

As per the latest weekly report from Glassnode, the net loss realization has reduced a bit recently, but the market is not near a neutral level of selling yet.

The “net realized profit/loss” is an indicator that measures the net magnitude of profits or losses being realized by all investors in the Bitcoin market.

The metric works by looking at the on-chain history of each coin being sold to see what price it was moved at before this. If the previous selling price of any coin was less than the current BTC price, then that particular coin has just been sold at a profit.

On the other hand, if the last price was more than the latest one, then the coin has realized some amount of loss.

When the net realized profit/loss has values greater than zero, it means the overall market is selling at a net profit right now. While if it has a negative value, it implies holders as a whole are realizing some loss at the moment.

Now, here is a chart that shows the trend in this Bitcoin indicator as a percentage of the market cap:

The 90-day moving average value of the metric seems to have been negative in recent days | Source: Glassnode's The Week Onchain - Week 34, 2022

As you can see in the above graph, the Bitcoin net realized profit/loss has had a deeply negative value during the last few weeks.

Historically, the last bottom phase of a bear market has been marked by a steady decline in the amount of losses being reaped, with the market eventually flipping into profits as a bull run takes hold.

Most recently, the degree of net losses being realized in the market has gone down slightly, but as of now the metric’s value is still fairly large. This could imply the crypto is not out of the bear market just yet.

BTC Price

At the time of writing, Bitcoin’s price floats around $21.3k, down 11% in the past week. Over the last month, the crypto has lost 5% in value.

The below chart shows the trend in the price of the coin over the past five days.

Looks like the value of the crypto has been moving sideways since the plunge a few days back | Source: BTCUSD on TradingView

Featured image from 愚木混株 cdd20 on Unsplash.com, charts from TradingView.com, Glassnode.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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