Glassnode noted how Bitcoin’s bear market has so far seen peak unrealized losses much lower than in previous cycles.
Bitcoin’s relative unrealized loss has fallen to just 8%
In its latest report, on-chain analytics firm Glassnode discussed the latest trend in Bitcoin’s relative unrealized loss. This index tracks the total amount of unrealized loss held by BTC investors as a percentage of market cap.
Below is the chart shared by Glassnode that shows the trend in the BTC metric over the past few sessions.
Looks like the value of the metric has declined in recent days | Source: Glassnode's The Week Onchain - Week 19, 2026
As can be seen in the chart, Bitcoin’s relative unrealized loss rose to a notable level alongside the price decline in early February, indicating that pain among investors has seen a sharp rise. With the recovery that has since followed, the value of the index has declined.
Today, the network’s relative unrealized loss is about 8%. The report described this drop in the scale as “a transition that shifts the prevailing sentiment from fear to uncertainty rather than resignation.”
Earlier, when the index rose, its value reached a high of 25%. This means that February’s crash meant that investors’ losses swelled to 25% of the cryptocurrency’s total market capitalization. This is a notable amount in itself, but a quick look at the chart shows that the level is actually well below the highs seen during previous bear markets.
At present, it is not clear what stage the current bear market is in. It is possible that the fact that the unrealized relative loss has not yet touched the previous highs indicates that the drawdown is not over yet. However, it is also likely that the current cycle will be different from previous cycles. Glassnode noted:
If $60,000 proves to be a cycle low, this bear market will be the shallowest on record, one that registered fear but stopped well short of the broad capitulation that has historically characterized perpetual cycle bottoms.
Another on-chain indicator indicating an improvement in market conditions is the realized cap, which essentially measures the total amount of capital that investors as a whole have invested in Bitcoin.
As the chart below shared by the analytics firm in the same report shows, the 30-day change in the maximum realized BTC had fallen deeply into negative territory earlier, indicating that capital was leaving the network.
How the capital netflow of the asset has fluctuated over the years | Source: Glassnode's The Week Onchain - Week 19, 2026
However, recently, the indicator has returned to the green zone, which means that capital is flowing back into Bitcoin. Glassnode explained, though:
Although the current reading is encouraging, it remains well below that threshold, suggesting that the capital flow supporting this recovery lacks the conviction seen at similar inflection points in the previous cycle.
Bitcoin price
Bitcoin has been stuck in a sideways move lately with its price still trading around $81,300.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image by Dall-E, chart from TradingView.com
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