Bitcoin Losses Now Equal 19% Of Market Cap, Echoing May 2022

bitcoinistPublished on 2026-02-21Last updated on 2026-02-21

Abstract

Analytics firm Glassnode reports that Bitcoin's current market conditions resemble those of May 2022, based on the surge in Relative Unrealized Loss. This metric, which measures the total unrealized losses of all underwater Bitcoin holders as a percentage of the market cap, has risen sharply to 19% amid recent price declines. The current level is the highest since 2023, and the trend mirrors the pattern observed during the onset of the 2022 bear market. Additionally, US spot Bitcoin ETFs are experiencing their largest drawdown in history, with outflows of over 100,300 BTC, indicating institutional de-risking and reinforcing a risk-off market environment. Bitcoin is currently trading around $66,700, showing signs of consolidation.

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 Recently

As explained by Glassnode in a new post on X, the current structure of the Bitcoin Relative Unrealized Loss could mirror May 2022. The “Relative Unrealized Loss” is an on-chain indicator that measures the amount of unrealized loss being held by BTC investors as a whole as a percentage of the asset’s market cap.

The 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.

The exact degree of loss carried by the token is equal to the difference between the two prices. The Relative Unrealized Loss sums up this value for all underwater coins and calculates what part of the market cap that it makes up for. Another indicator called the Relative Unrealized Profit tracks the tokens of the opposite type.

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:

The value of the metric seems to have shot up in recent days | Source: Glassnode on X

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.

“Current market pain echoes a similar structure seen in May 2022,” noted Glassnode. The bear market of 2022 didn’t reach its bottom until the FTX crash put investors in an unrealized loss exceeding 60% of the market cap. It now remains to be seen when Bitcoin will reach a low this time around.

In some other news, the market downturn that has followed since the October all-time high (ATH) has resulted in the largest drawdown in history for the US spot exchange-traded funds (ETFs), as the analytics firm has pointed out in another X post.

How the drawdown experienced by the US BTC spot ETFs has fluctuated over the last couple of years | Source: Glassnode on X

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 Price

Bitcoin has been stuck in consolidation recently as its price is floating around $66,700.

The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView

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Related Questions

QWhat is the Bitcoin Relative Unrealized Loss and how is it calculated?

AThe Bitcoin Relative Unrealized Loss is an on-chain indicator that measures the total amount of unrealized loss held by all Bitcoin investors as a percentage of the asset's market capitalization. It is calculated by analyzing the transaction history of each coin to determine its last selling price. If this price is higher than the current spot price, the coin is considered 'underwater.' The metric sums the total loss for all such coins and expresses it as a portion of the total market cap.

QWhat is the current value of the Bitcoin Relative Unrealized Loss, and why is it significant?

AThe current value of the Bitcoin Relative Unrealized Loss is approximately 19% of the market cap. This is significant because it is the highest level the indicator has reached since 2023, and its recent sharp increase mirrors the market structure observed in May 2022, which was a period of significant bearish transition in the previous market cycle.

QHow does the current market pain, as measured by this indicator, compare to the 2022 bear market?

AThe current market pain, with a Relative Unrealized Loss of 19%, echoes the structure seen in May 2022. However, the 2022 bear market did not reach its ultimate bottom until the FTX crash, which caused investor unrealized losses to exceed 60% of the market cap, a much more severe level of pain than the current 19%.

QWhat other significant on-chain data point has Glassnode highlighted regarding US spot Bitcoin ETFs?

AGlassnode highlighted that the market downturn following the October all-time high has resulted in the largest drawdown in history for US spot Bitcoin ETFs. Currently, these ETFs are down by 100,300 BTC, indicating substantial institutional de-risking that has added structural weight to the market's weakness.

QAt what price was Bitcoin trading at the time of the report, and what was its recent trend?

AAt the time of the report, Bitcoin was trading near $67,000 and had been stuck in a period of consolidation, floating around $66,700. This followed a recent crash to $60,000, which was a key driver behind the sharp surge in the Relative Unrealized Loss metric.

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1.4k Total ViewsPublished 2025.05.13Updated 2025.05.13

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