[Analysis] "Bitcoin Realized Profit/Loss Ratio Falls Below 1…Shift to a 'Loss-Realization Phase'"

On-chain analysis suggests the Bitcoin (BTC) market has entered a full-fledged loss-realization phase.

According to Glassnode on the 23rd (local time), the 90-day simple moving average (90D-SMA) of the Bitcoin Realized Profit/Loss Ratio fell below 1. A reading below 1 means realized losses outweigh realized profits in the market, pointing to a regime shift into a period of excess loss realizing.

Looking at past cycles, the indicator tended to remain below 1 for extended periods. Historically, it stayed under 1 for more than six months before recovering back above 1, a pattern interpreted as an early sign of liquidity gradually returning. In other words, inflows resumed after loss-realization pressure had been sufficiently absorbed. Glassnode assessed this as "a positive sign that liquidity is flowing back into the market."