Felix Pinkston
Feb 04, 2026 19:15
Glassnode evaluation reveals BTC’s MVRV Z-Rating at lowest since Oct 2022, with $1.26B each day realized losses and ETF outflows signaling deeper correction forward.
Bitcoin’s 26% plunge from $98,000 to $72,000 over the previous month has triggered probably the most extreme on-chain stress readings for the reason that FTX collapse, in line with Glassnode’s newest weekly report. The info paints an image of a market in full capitulation mode, with institutional demand evaporating simply as compelled promoting accelerates.
The numbers are stark. BTC’s MVRV Z-Rating—a key profitability metric evaluating market worth to realized worth—has compressed to ranges not seen since October 2022. In the meantime, the 7-day common of realized losses has surged above $1.26 billion each day, with single-day spikes exceeding $2.4 billion throughout the worst of the promoting.
Structural Breakdown Confirmed
Value has now fallen decisively beneath the True Market Imply at $80,200, a degree that traditionally acts as the ultimate help throughout shallow corrections. This metric strips out dormant cash and early miner holdings to point out the place lively capital truly sits. Shedding it, as Glassnode analyst Chris Beamish notes, “confirms a deterioration that has been constructing since late November.”
The configuration more and more resembles early 2022—that uncomfortable interval when Bitcoin transitioned from uneven range-bound buying and selling right into a full bear market. The Realized Value round $55,800 now defines the decrease boundary the place long-term holders traditionally step again in.
Demand Has Vanished
Maybe extra troubling than the promoting itself is who is not shopping for. Spot volumes stay “structurally weak” regardless of the dramatic worth decline. The 30-day quantity common barely lifted at the same time as BTC shed 1 / 4 of its worth—a textbook demand vacuum.
Institutional flows have flipped damaging throughout the board. Spot ETFs, company treasuries, and government-linked consumers are all pulling again. This marks a stark reversal from the growth section when these allocators supplied constant bid help.
“With institutional and treasury demand now not offering a dependable bid, draw back danger stays elevated,” the report states. Any bounces must be handled as corrective fairly than trend-reversing till these flows stabilize.
Leverage Getting Flushed
Derivatives markets are experiencing their largest lengthy liquidation cascade of your entire drawdown. The flush-out accelerated as worth broke by means of the mid-$70,000s, with compelled promoting amplifying volatility and widening intraday ranges.
Choices markets inform the identical story. Quick-dated implied volatility spiked towards 70% throughout the retest of $73,000, with one-week IV leaping roughly 20 factors in two weeks. Draw back skew has steepened additional—merchants are paying up aggressively for put safety fairly than positioning for restoration.
The 1-week volatility danger premium has turned damaging for the primary time since early December, dropping to round -5 from +23 a month in the past. When implied vol trades beneath realized vol, gamma sellers begin bleeding, including mechanical strain fairly than absorbing it.
The place’s the Flooring?
On-chain distribution information exhibits notable accumulation between $70,000 and $80,000, with a very dense provide cluster between $66,900 and $70,600. These cost-basis concentrations typically act as short-term shock absorbers the place sell-side strain meets responsive demand.
BTC traded at $76,180 at press time Wednesday, up 4% in 24 hours after dipping close to $74,600 over the weekend. The bounce got here as valuable metals resumed their surge, although correlation with danger belongings stays elevated.
Pantera Capital’s Dan Morehead reiterated his long-term bullish stance this week, arguing Bitcoin will “massively” outperform gold over a decade. However for now, the on-chain verdict is evident: till spot demand returns in dimension, any rallies face speedy resistance at that $80,200 True Market Imply overhead.
Picture supply: Shutterstock
