Analytics firm Glassnode has highlighted how the current Bitcoin market pain echoes May 2022 based on the trend in the Relative Unrealized Loss.
Bitcoin Relative Unrealized Loss Has Shot Up RecentlyThe metric works by going through the transaction history of each coin on the blockchain to determine the last price it was moved at. If this last selling price was less than the current spot price for any token, then the indicator considers that particular coin to be underwater right now.
Now, here is the chart shared by the analytics firm that shows the trend in the Bitcoin Relative Unrealized Loss over the last several years:
As displayed in the above graph, the Bitcoin Relative Unrealized Loss has witnessed a rise as the cryptocurrency’s price has gone through a bearish shift in recent months. The latest crash to $60,000, in particular, induced a sharp surge in the indicator.
Currently, the Relative Unrealized Loss is sitting at a value of about 19% as the asset trades near $67,000. From the chart, it’s apparent that this is the highest level that the indicator has hit since 2023. But more importantly, the recent trajectory in the metric has looked reminiscent to that witnessed during the bear-market transition from the last cycle.
At the moment, Bitcoin spot ETFs are down 100,300 BTC. “Institutional de-risking has added structural weight to the ongoing weakness, reinforcing the broader risk-off environment,” explained Glassnode.
BTC PriceBitcoin has been stuck in consolidation recently as its price is floating around $66,700.
