Bitcoin · Strategy · Cointelegraph
Bitcoin profit and loss ratio falls to 43-month low
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Bitwise chief investment officer Matt Hougan said the bottom is “closer than ever,” while a Swan Bitcoin analyst suggested investors buy now at a discount rather than overpaying later.
Key facts
- The Bitcoin realized P&L ratio, which measures the net percentage of Bitcoin (BTC) in profit or loss relative to total supply, hasn’t fallen this low since December 2022, shortly after FTX shockingly
- Many analysts blamed that drop on Strategy, the largest corporate Bitcoin holder, after its top perpetual preferred stock offering, Stretch (STRC), broke from its $100 par value to below $75, raising
- Swan Bitcoin analyst Adam Livingston noted that Bitcoin is currently trading only 16% above the realized price, the network's aggregate on-chain cost basis, a level that has historically coincided
- The data could lift market sentiment, which has repeatedly fallen to near-record lows during the course of Bitcoin’s latest 50% drawdown from $126,080, set in October
Summary
Bitcoin’s realized profit and loss ratio has fallen to a 43-month low of -0.35, a figure that signals extreme market-wide loss conditions but has historically coincided with market bottoms, blockchain analytics platform CryptoQuant said. The Bitcoin realized P&L ratio, which measures the net percentage of Bitcoin (BTC) in profit or loss relative to total supply, hasn’t fallen this low since December 2022, shortly after FTX shockingly collapsed and sent Bitcoin below $16,000. “Historically the indicator has marked BTC bottoms with extreme precision,” CryptoQuant said on Thursday. The data could lift market sentiment, which has repeatedly fallen to near-record lows during the course of Bitcoin’s latest 50% drawdown from $126,080, set in October.