Expert-Reviewed Bitcoin Market Insights: An Analysis of On-Chain Data
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Surging Bitcoin Exchange Profit/Loss Ratio: A Bull Market Indicator?
In a recent analysis conducted by the on-chain analytics firm Glassnode, the focus was on Bitcoin’s transactional dynamics associated with centralized exchanges. Despite the presence of alternative trading avenues like over-the-counter (OTC) desks, exchanges remain pivotal for Bitcoin trading and speculation.
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This makes exchange-related volume a crucial indicator of investor interest in Bitcoin trading activities. According to Glassnode,
“The volume of deposits and withdrawals to exchanges, when contrasted with the total on-chain volume, serves as a metric for gauging Bitcoin trading interest among investors.”
The accompanying chart illustrates the trend of exchange-related volume dominance in comparison to the broader Bitcoin network activity.
The metric’s value has been on an upward trajectory in recent months, as evidenced by Glassnode’s report for Week 21, 2025. This increase coincides with Bitcoin’s rally to new all-time highs, reflecting heightened trading demand among investors.
Currently, exchange-related transactions account for 33% of all Bitcoin network activities. This proportion surpasses the peak observed in early 2025, yet remains below the surge witnessed in Q1 2024.
Clearly, trading is vigorous, but what characterizes these transactions? Focusing on deposits, investor behavior can be dissected into profit and loss transactions.
Glassnode analyzes on-chain data to ascertain the price at which coins involved in transactions were moved before reaching exchanges. The difference between this price and the exchange deposit price reveals the realized profit or loss.
The chart below highlights the average profit/loss associated with exchange deposits on the Bitcoin network:
From the data, it’s evident that Bitcoin investors have predominantly engaged in profit-driven transactions recently. Profitable transactions have yielded an average realized gain of $9,300, significantly overshadowing the $780 average loss realized in loss-making deposits to exchanges.
“This results in the average profit being 12 times higher than losses, approaching extremes associated with the most dynamic phases of previous bull markets,” observes Glassnode.
Analyzing the Mean Realized Profit/Loss Ratio for Exchange Inflows
At present, Bitcoin’s price is around $105,800, reflecting a nearly 5% decline over the past week.
The cryptocurrency’s price has been experiencing a downward trend recently.
Featured image sourced from Dall-E. Data charts from Glassnode.com and TradingView.com.
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