Bitcoin Realized Loss Metric Hits Multi-Year Low

The metric, tracked by analytics firm CryptoQuant, measures the net percentage of Bitcoin held at a profit or loss relative to the circulating supply. Similar dips below this -0.35 level occurred during the 2015 and 2019 bear markets, preceding sustained recoveries. While the data reflects widespread realized losses across the network, signs of stabilization have emerged. Bitcoin has climbed over 7% from its June 25 low of $58,190, recently reclaiming the $62,500 level.

Institutional interest has also shown a shift, with U.S. spot Bitcoin ETFs recording $221.7 million in net inflows. This activity breaks a 10-session streak of outflows that saw investors withdraw roughly $2.7 billion. Softer U.S. economic data helped drive this renewed sentiment, easing anxiety surrounding Federal Reserve rate policies.

Bitwise Chief Investment Officer Matt Hougan attributes the current recovery to a necessary unwinding of leveraged positions, specifically noting the volatility surrounding Strategy’s preferred stock offering. Hougan suggests that while timing the exact bottom remains difficult, the reduced leverage points toward the end of the correction. He expects a potential autumn rally driven by institutional participants—including pension funds, sovereign wealth funds, and asset managers—rather than retail-led momentum.