Bitcoin’s realized loss is still low despite recent volatility. What’s the significance?
The Bitcoin realized loss metric has remained low despite the recent volatility in Bitcoin’s price, according to on-chain data. Glassnode, an on-chain analytics firm, reported that investors experienced only $112 million in losses during the recent drop in the cryptocurrency’s value. The “entity-adjusted realized loss” is a metric that measures the total amount of loss in USD that Bitcoin investors have recently realized on the blockchain. The realized loss metric specifically tracks such losses being harvested throughout the network. During volatile events like crashes, inexperienced short-term holders tend to panic and sell off their coins, even if they are holding them at a loss. However, the recent trend of low realized losses could suggest an increased degree of resilience among market participants. At the time of writing, Bitcoin is trading around $26,800, down 1% in the last week.