The Largest Investors’ Realized Loss in Bitcoin History Just Happened, But There’s Good News

BTC fell from $21,000 to $18,000 below during the weekend, resulting in the largest USD-denominated realized losses for bitcoin investors. Long-term holders were some of the most active sellers, with some realizing losses exceeding 70%.

Largest USD Denominated Realized Loss Strike

BTC has been in bearish mode since last week, when it registered the longest consecutive negative streak of weekly candles in red. This is due to investors suffering losses.

Glassnode data shows that BTC holders have “locked” more than $7.3 billion in losses between Friday and Sunday. This is despite the asset’s plunge to $21,000 from $17,500 18 months ago.

These three days were the longest USD-denominated realized losses in #Bitcoin’s history.

Investors who have accumulated coins at higher prices have locked in losses of $7.325B in Bitcoin.

This thread explores this in greater detail

1/9 pic.twitter.com/O7DjSK2rEQ

— glassnode (@glassnode) June 19, 2022

Analytics firm reported that approximately 555,000 BTC had been traded between $18,000 to $23,000. It was not surprising that short-term holders sold large quantities of Bitcoin, with STH–SOPR “reaching levels comparable to the Nov 2018 bear markets capitulation event.”

These investors suffered greater losses than any other investor in five years: at the beginning of the 2018 bear markets, during the COVID-19-induced crash March 2020 and between May and July 2021.

Perhaps more shocking is the behavior long-term holders. Glassnode stated that such investors sold 178,000 BTC at prices below $23,000. Some of these transactions resulted in huge 70%+ losses. Since they sold around 1.31% off their total holdings, their aggregate balance has fallen to September 2021 levels.

We can see that Long-Term Holders sent coins to exchanges for profit and loss.

A few #Bitcoin LTHs bought the $69k top and then sold the $18k bottom to lock in -75% losses

.

LTH total losses of 0.0125% of the Market Cap per day

5/9 pic.twitter.com/bTCvuciUMX

— glassnode (@glassnode) June 19, 2022

The (Possibly) Good News?

Glassnode observed that bitcoin’s profit share had fallen to 49% after it fell below $18,000. This percentage has dropped to between 40% and 50% in bear markets, suggesting that this could be the end of the bear market correction.

Analytics resource highlighted the importance of these levels and stated, “Bitcoin investor convictions are being seriously tested” now.

It is worth noting that BTC already showed some positive signs. The cryptocurrency has recovered over $3,000 per day and hovers above $20,000.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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