Monday, December 5, 2022

Sell-off wiped $4.23 billion off BTC investors last week- report.

Must Read

[ad_1]

Bitcoin price fell from highs of $30,300 this past week to test lows near the critical $20,000 level this week.

The sell-off, according to on-chain data firm Glassnode, brought realized losses for Bitcoin investors in US dollar terms to over $4.23 billion. They are historical figures – probably as Bitcoin has fallen from new heights unlike before.

Per the platform’s latest on-chain report, the on-going sell-off saw both short term holders and long term holders sink into unprofitability – the losses being three times larger than what the market experienced in March 2020.

Bitcoin investors have locked in the largest USD denominated Realized Loss in history last week. The $BTC spent on-chain this week realized net losses of over $4.23B. This eclipses all major sell-offs in 2021, and is 3x larger than March 2020,” Glassnode tweeted on Thursday.

Short term holders lose 0.01% of Market cap/day

Glassnode says that short term holders, (the new entrants in the market and active traders), sold off aggressively this past week.

However, the net realized losses for this cohort was 0.01% of Bitcoin market cap per day, and pale in comparison to major drawdowns recorded over the past five years. For instance, STHs lost 0.02% of the market cap when BTC price fell sharply in March 2020.

Long term holders face first capitulation in 2021-2022 cycle

A long term holder (LTH) refers to Bitcoin supply that hasn’t moved for the past 155 days or more. This group of wallets have greater conviction on BTC’s long term value and thus rarely sell.

 According to the Glassnode report, this cohort of holders has net realized losses equaling 0.007% of market cap each day – “as large as March 2020.”

“Bitcoin Long-Term Holders however realized major losses, equal to 0.007% of the Market Cap per day. This is almost as large as March 2020, and is the first major LTH capitulation event in the 2021-22 cycle.”

BTC/USD is priced around $21,260 at the time of writing, about 2.6% up in the past 24 hours. Veteran trader Peter Brandt says BTC is likely to see a relief rally. However, sceptically, he predicts more pain. 



[ad_2]

Source link

Cryptoultimatum Crypto Trading Signal Service

LEAVE A REPLY

Please enter your comment!
Please enter your name here

I show You how To Make Huge Profits In A Short Time With Cryptos!
Trending
- Advertisement -

More Articles Like This