Since September 2024, Bitcoin’s profitability stress ratio has reached 0.23, which indicates that the cryptocurrency market is currently experiencing extreme volatility, according to on-chain analytics firm Glassnode. The stress ratio measures the proportion of supply that experiences loss compared to its overall supply while indicating holder tensions.
#Bitcoinprofitability stress ratio measures the relative magnitude of supply in loss, reflecting market stress. At the moment, the read is 0.23, the highest since September.
— glassnode (@glassnode) March 17, 2025
When the stress ratio increases, investors become more inclined to sell their Bitcoin holdings because they suffer losses from their investment, resulting in possible shifts in market sentiment.
Historical Trends Suggest Market Pressure
Glassnode reported in its recent update that market turmoil historically occurred when this metric surpassed 0.2. Rising stress ratios indicate increased selling pressure that might produce significant market movement.
The market shows elevated stress levels when the stress ratio rate surpasses 0.2. A sustained upward trend in value indicates growing market pressure that might establish long-term changes in market sentiment, according to Glassnode.
Market Sentiment at a Critical Point
The Bitcoin price has experienced varied trends throughout the past months, while market participants keep tracking vital market signals. The supply stress ratio increase shows that more Bitcoin holders are now dealing with negative holding prices, which could result in sudden sales by panickers and methodical buying by permanent investors.
The Glassnode graph displays the relationship between Bitcoin’s price levels and market supply values based on realized profit and loss margins. The red line that tracks supply in loss shows the continual increase in accordance with rising market stress indicators. Recent months have displayed a drop in the blue line, which indicates a realized price of supply in profit.
What’s Next for Bitcoin?
Market stress conditions create circumstances for Bitcoin traders to monitor whether stress ratios either advance further or reach equilibrium. An increasing stress ratio might lead to additional sell-offs that would strengthen bearish market trends. Market strength and potential recovery become apparent when the stress ratio either stabilizes or declines. Bitcoin investors require constant vigilance through their observation of both blockchain indicators alongside external economic elements that guide future price actions.