> For the complete documentation index, see [llms.txt](https://docs.glassnode.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.glassnode.com/further-information/metric-guides/unrealized-profit-loss/unrealized-loss.md).

# Unrealized Loss

Unrealized Loss represents the total loss accrued by UTXOs which were created when the price of the asset was higher than the current price.

## Indicator Overview

By looking at the delta between the price when a [UTXO](/data/utxo-vs.-account-based-chains.md#utxo-unspent-transaction-output-chains) was created vs. the current price of an asset, we can determine whether the specific coins in that UTXO are in a state of unrealized profit (price has increased) or loss (price has decreased), and to what extent.

Unrealized Loss represents the total loss accrued by UTXOs which were created (i.e. realized) when the price of the asset was higher than the current price.

<figure><img src="https://2190898932-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Ldi5WtVBeQ2iFbdqJ1a%2Fuploads%2Fgit-blob-36d078bc76dd5fd2367d686b53704583283543fd%2F1.png?alt=media" alt="Bitcoin: Unrealized Loss"><figcaption></figcaption></figure>

* [View Unrealized Loss in Glassnode Studio](https://studio.glassnode.com/metrics?a=BTC\&m=indicators.UnrealizedLoss)
* [View Unrealized Loss in Glassnode API Docs](https://docs.glassnode.com/basic-api/endpoints/indicators#unrealized-loss)

## How is it measured?

Unrealized Loss is defined as the total loss (in USD) of all coins in existence whose price at realization time was higher than the current price, normalized by the market cap.

$$
\begin{align\*} \textrm{Unrealized Loss} &= \textrm{value} \cdot (\textrm{price}*\textrm{created}~~{\color{gray}{\textrm{\[USD]}}} - \textrm{price}~~{\color{gray}{\textrm{\[USD]}}}) \ &\quad, {\color{gray}{\textrm{(of all UTXOs where price$*\textrm{created}$ $>$ price)}}} \\\[2em] \textrm{Relative Unrealized Loss} &= \frac{\textrm{Unrealized Loss}}{\textrm{Market Cap}} \end{align\*}
$$

## Further Resources

Rafael Schultze-Kraft - [Dissecting Bitcoin's Unrealised On-Chain Profit/Loss](https://medium.com/glassnode-insights/dissecting-bitcoins-unrealised-on-chain-profit-loss-73e735020c8d)