UTXOs in Loss

UTXOs in Loss represents the absolute amount of UTXOs in a given network which are currently in loss.

Indicator Overview

UTXOs in Loss, as the name suggests, represents the absolute number of UTXOs in a given network which are currently in loss (i.e. the price at the time they were created is higher than the current price).

This metric is helpful in highlighting market bottoms by suggesting when investors might be ready to re-enter the market.

It is important to note that unlike Unrealized Loss, UTXOs in Loss does not account for the amount of loss - only the binary case of whether or not the UTXO is in loss.

How is it measured?

UTXOs in Loss is calculated by determining which UTXOs were created when the price was higher than the current price (i.e. the price has decreased since the UTXOs were created). It represents the total absolute number of those UTXOs.

UTXOs in Loss=number of all UTXOs where pricecreated> price\textrm{UTXOs in Loss} = {\color{gray}{\textrm{number of all UTXOs where price$_\textrm{created}>$ price}}}

About

Introduced By

Glassnode

Date Introduced

November 2019

Further Resources

Rafael Schultze-Kraft - Dissecting Bitcoin's Unrealised On-Chain Profit/Loss