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>>Bitcoin's losses have reached 19% of its market capitalization, mirroring May 2022's downturn.

Bitcoin's losses have reached 19% of its market capitalization, mirroring May 2022's downturn.

crypthub

about 16 hours ago

Relative Unrealized Loss Metric

Glassnode notes Bitcoin's current Relative Unrealized Loss (RUL) mirrors May 2022, indicating widespread investor losses. RUL measures unrealized losses as a percentage of Bitcoin's market cap by analyzing transaction history. Coins sold below current prices contribute to the metric, reflecting underwater holdings. This indicator contrasts with Relative Unrealized Profit, tracking gains instead. Recent data shows RUL rising sharply amid bearish price shifts.

Current Market Conditions

Bitcoin's RUL has surged to 19% as prices fell to $60,000, marking the highest level since 2023. This mirrors May 2022’s bear market trajectory before the FTX crash. The 2022 bear market bottomed when losses exceeded 60% of the market cap. Current conditions suggest a similar pattern, though the timing of Bitcoin’s next low remains uncertain.

Impact on ETFs and Price

The October 2024 all-time high has led to a record 100,300 BTC drawdown in US spot ETFs. Institutional de-risking has intensified market weakness, reinforcing a risk-off environment. Bitcoin remains in consolidation near $66,700, with no clear directional bias. Glassnode highlights structural factors deepening the downturn, affecting both price and institutional holdings.