Fast Facts
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Significant Decline: Bitcoin (BTC) has experienced a sharp 28% drop this month, trading around $63k, and is 47% below its all-time high of ~$126k from October 2025.
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Worrisome Profit/Loss Ratio: Glassnode reports the 90-day realized profit/loss ratio has fallen below 1, historically indicating a potential continuation of losses for 5–6 more months.
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Historical Precedents: Previous historical drops—25% in 2022 and over 50% in 2018—followed similar conditions, suggesting a risk of further decline if the trend holds.
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Market Sentiment: The decline in the profit/loss ratio indicates extreme fear and weak on-chain signals, which complicate the recovery outlook for Bitcoin.
Extended Sell-Side Pressure Ahead for Bitcoin, Says Glassnode
Bitcoin (BTC) is feeling the heat. It recently fell about 28% this month, trading near $63,000, which is almost 47% lower than its all-time high of $126,000 reached in October 2025.
Analysts at Glassnode have raised alarms about the cryptocurrency’s market performance. Their data shows that the 90-day realized profit/loss ratio has fallen below 1. This shift has historically indicated a prolonged phase dominated by realized losses over profits, typically lasting five to six months.
Looking back, past cycles reveal patterns. In 2022, Bitcoin dropped about 25% over six months after the profit/loss ratio fell below 1. A similar plunge occurred in 2018, where BTC experienced a decline exceeding 50% within five months under the same conditions.
Glassnode highlights that the downturn signals bearish sentiment among investors. A low realized profit/loss ratio suggests many holders are now selling at a loss, reflecting a lack of confidence in recovery.
The firm pointed out that a rise back above a ratio of 1 would likely indicate reduced selling pressure and improved market sentiment. However, current indicators, such as extreme fear among investors, raise concerns about recovery timelines.
As blockchain analytics continues to refine understanding of market trends, the development of technology in the crypto space remains crucial. Tools that track these metrics will likely become more sophisticated. Investors must stay informed and adapt to changing market conditions.
With the outlook remaining uncertain, stakeholders will watch closely for changes that could signal a potential recovery for Bitcoin.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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