"Bitcoin’s realized P&L for recent investors plunges…capitulation persists as market builds a base"

Suehyeon Lee

Summary

Glassnode said market pressure is continuing as realized P&L indicators for recent Bitcoin investors have deteriorated sharply.
It reported that Net Realized P&L (7D-EMA) for recent investors plunged to –$1.24 billion and, after rebounding, remains in net-loss territory around –$480 million.
Glassnode characterized the current environment as a base-building phase, noting that despite near-term volatility and potential additional stop-loss selling, selling pressure is being structurally and gradually exhausted.

Bitcoin (BTC) has seen a sharp deterioration in realized profit-and-loss metrics for recent investors, suggesting continued market pressure, according to an analysis.

According to on-chain data analytics firm Glassnode on the 22nd (local time), the 7-day exponential moving average (7D-EMA) of Net Realized Profit & Loss for recent investors plunged to –$1.24 billion on Feb. 6. It has since eased to around –$480 million, but remains in net-loss territory.

This indicates that investors who bought more recently locked in sizable losses and exited the market. While the intensity of losses has moderated somewhat, the broader market regime is still assessed to be under pressure.

Glassnode described the current phase as a “base-building” period. In this phase, as prices consolidate near lows, repeated capitulation by weak hands tends to occur. In the short term, volatility and additional stop-loss selling may continue, but structurally it is interpreted as a stage in which selling pressure is gradually being exhausted.

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