Indicator Overview

The indicator measures the Total Realised Loss, which is the total dollar volume of losses realised on-chain each day by all market participants. This metric is calculated by summing the total difference between the coin's acquisition price and the price at which it was spent, but only for coins that resulted in a monetary loss. It provides a direct view of the aggregate fear, panic, and capitulation behavior across the entire market.

How To Use

Total Realised Loss is a crucial indicator for identifying the final stage of a market downturn. Extreme spikes in this metric indicate severe, aggregate loss-selling across the entire network. These events are the clearest signal of a major capitulation phase, which historically marks the absolute low of a bear cycle as holders panic sell at depressed prices. When the realised loss spike is high and then begins to subside, it suggests that the mass panic-selling has exhausted itself, setting the stage for price recovery. Conversely, during powerful bull markets, this metric remains suppressed near the zero line. This confirms an extremely healthy market structure with minimal selling pressure driven by panic, as most coins are held at an unrealised profit.