Bitcoin (BTC) On-Chain Analysis: Realized Losses Capture May 12 Capitulation

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In Brief
  • Realized losses reached a new yearly high on May 12.

  • On that same day, net realize profit/loss reached a new all-time low.

  • Realized losses were over two times higher than realized profits on May 12.

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Be[In]Crypto takes a look at bitcoin (BTC) on-chain indicators, including those factors that speak to realized profits and losses. 

Realized losses show total U.S. dollar (USD) loss value for BTC that were sold at a loss at a specified date.

On May 22, 2021, the indicator reached a new all-time high value of slightly more than $1.55 billion. At the time, the BTC price was at $34,000. Therefore, it is likely that this loss was realized as a result of all-time high buyers from April 2021 capitulating.

BTC realized losses

Realized losses peaked close to $1 billion twice (red circles) on December 2021 and February 2022. The reading occurred after a decrease from the November 2021 all-time high. Still, since the value was considerably lower than that of May 2021, it seemed that not all ATH buyers had capitulated. 

This capitulation occurred on May 12, 2022, when realized losses spiked to $1.5 billion (blue circle). This reading just barely failed to reach a new all-time high.

Net realized profit/loss

The Net Realized Profit/Loss (NRPL) indicator shows that the May 12 capitulation event (black circle) was the highest in history, recording a value of $1 billion loss.

This means that the difference between realized losses and profits was $1 billion. It is considerably lower than the capitulation events of June 2021 and January 2022 (red circles). 

However, despite the NRPL being at an all-time low, the realized profit/loss ratio indicator is currently at 0.57, meaning that realized losses are little more than two times as much as realized profits. A very similar value was reached in January 2022.

The indicator has shown considerable lower values before, including 0.19 and 0.39 (black circles) in Jan. and Dec. 2019, respectively.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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