Knowledge from Glassnode reveals Bitcoin holders realized 14 occasions extra losses than earnings in current weeks.
Bitcoin 7-Day MA Realized Revenue/Loss Ratio Units New All-Time Low
As per the most recent weekly report from Glassnode, the realized revenue/loss ratio has assumed its lowest worth ever just lately.
At any time when a coin sits idle on the chain and the worth of Bitcoin modifications, it accumulates some quantity of revenue or loss, relying upon the course of the worth 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 overall quantity of revenue/loss it was carrying is then stated to be “realized.”
The realized revenue and the realized loss metrics hold observe of such quantities of revenue and loss being harvested by traders 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’s a chart that exhibits the pattern within the 7-day transferring 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 current days | Supply: Glassnode's The Week Onchain - Week 49, 2022
As you possibly can see within the above graph, the Bitcoin realized revenue/loss ratio has plunged deep under 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 traders are realizing a better quantity of loss than revenue proper now.
Within 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 occasions 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 at all times been on the heart of macro market regime shifts.
If the identical pattern follows this time as effectively, then the present Bitcoin market may additionally be in the course of such a shift.
On 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 under chart exhibits the pattern within the worth of the coin over the past 5 days.
Seems like the worth of the crypto has been buying and selling sideways round $17k | Supply: BTCUSD on TradingView
Featured picture from 愚木混株 cdd20 on Unsplash.com, charts from TradingView.com, Glassnode.com