BeIn Crypto takes a look at Bitcoin (BTC) on-chain indicators, more specifically the Net Realized Profit Loss (NRPL) indicator, in order to better gauge the scale of losses during the Dec 4 drop.

Realized losses measure the value of all coins who were moved at a lower price than they were bought. Therefore, it measures the total dollar amount of losses from all coins that were sold at a loss.

Since the upward movement began in March, realized losses have reached an all-time high of $2.191 billion on May 20 (black circle). At the time, BTC had just fallen from roughly $57,000 to $37,000. 

Realized losses spiked once more (blue circle) on June 26, during a drop towards $31,000.

However, they have been negligible in the period since, due to the fact hat BTC has been moving upwards.

However, on Dec 4, there was a sharp fall in the BTC price, leading to a low of $42,00, from highs near $60,000 just one week earlier. 

This led to realized losses spiking to $1.233 Bn (red circle), the third-highest yearly value to date.

The Net Realized Profit/Loss indicator shows the net value of all transactions in the market for a specific day. Therefore, realized losses are subtracted from realized profits. 

This indicator gives a similar reading to the realized loss one, since it shows three downward spikes, which transpired on May 20, June 26 and Dec 4. The Dec 4 spike was the smallest out of the three. 

However, unlike the unrealized loss indicator, the all-time low reading for NRPL transpired on June 26. This means that despite the significant loss on May 20, the considerable coins that were sold at a profit served to negate said loss, hence leading to a smaller total loss than on June 24.

Coin days destroyed (CDD) is an indicator that measures the lifespan of coins that are being sold on the market. Each day a coin is unspent, it gains one “coin day.” Therefore, a high indicator reading means that coins have been unspent for a significant period of time. 

However, the indicator did not spike during Dec 4. This suggests that the majority of coins sold were of short-term holders.

This also makes sense when considering the high readings of realized losses, since short-term coins were bought near the $60,000 top.

This is confirmed when looking at spent outputs between 1 day – 1 week, which spiked considerably on Dec 4.

Therefore, the majority of coins sold at a loss on Dec 4 were bought between Nov 27 and Dec 3. 

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

The post Realized Losses Record Third Highest Yearly Value – Bitcoin (BTC) On-Chain Analysis appeared first on BeInCrypto.

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