The analytics firm Glassnode has revealed intriguing insights into the Bitcoin market, particularly regarding the trend in Bitcoin Realized Loss, which may suggest that sellers are beginning to experience exhaustion.
Bitcoin Realized Loss Is Showing Signs Of Saturation
In a recent post on X, Glassnode discussed how Bitcoin capitulation has unfolded during the latest price downturn. A critical indicator in this analysis is the “Realized Loss,” which reflects the total amount of losses investors within the Bitcoin network are ‘realizing.’
This metric operates by analyzing the transaction history of each coin being either moved or sold on the blockchain, assessing prior transaction prices against current market values. A sale that occurs at a price lower than previous transactions implies that the current seller is realizing a loss.
The difference between the previous sale price and the current market price indicates the amount lost, and the Realized Loss aggregates these values for all transactions to calculate a comprehensive total.
Complementary to the Realized Loss is the Realized Profit indicator, which tracks transactions where the current market price exceeds the previous sale price.
Recently, Glassnode shared a chart depicting the trend of Bitcoin Realized Loss over the past year:
The graph illustrates several significant spikes in Bitcoin Realized Loss during bearish price action observed in February and March, indicating that investors engaged in panic selling of their underwater positions.
Recent fears surrounding tariffs have contributed to a continuation of the asset’s drawdown, prompting substantial capitulation from holders once again.
However, it is noteworthy that the scale of the current 6-hour Realized Loss is considerably lower than previous spikes. This trend suggests that the market’s capitulation may be reaching a saturation point, which according to Glassnode, could be an early signal that sellers are becoming exhausted. If this assertion holds true, Bitcoin may be approaching a potential bottom.
In the same analysis, Glassnode delved into the current trajectory of the market capitalization of altcoins, encompassing cryptocurrencies outside of Bitcoin, Ethereum, and stablecoins.
The chart indicates that the altcoin market cap peaked at an all-time high of $1 trillion in December 2024, but has since declined to approximately $583 billion. Glassnode noted that, “Assets further out on the risk curve have shown heightened sensitivity to liquidity shocks, leading to severe sector-wide devaluation.”
BTC Price
Over the past few days, Bitcoin has made attempts at recovery, now stabilizing at around $81,900.
