Bitcoin’s Realized Losses Surge to Levels Last Seen in 2022
- Realized losses among Bitcoin entities have increased significantly, nearing levels from the deep retracements of the 2022 bear market.
- The Relative Unrealized Loss (30D-SMA) has risen to 4.4%, a sharp increase after staying below 2% for nearly two years.
- Despite Bitcoin bouncing from a low to above $92,000 on November 22, realized losses are averaging around $555 million per day.
- Long-term holders are taking profits aggressively, with realized gains reaching about $1 billion daily and briefly exceeding $1.3 billion.
- ETF flows have cooled, reducing one of the largest sources of buy-side liquidity for Bitcoin.
The recent price downturn below $90,000 has placed pressure on short-term investors as they continue to incur losses at increasing rates. The fading demand and weakening liquidity suggest that rebuilding confidence will require renewed liquidity influxes.
Despite some profit-taking by long-term holders, Bitcoin remains just above its True Market Mean cost-basis level, indicating potential structural support amid current market stress.(Source)
