Realized Losses Capture May 12 Capitulation

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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. 

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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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