That Bitcoin Thursday through Saturday sell-off was the biggest realized loss of all time for the top cryptocurrency by market cap, with investors recording $7.3 billion in locked-in losses.
About 555,000 bitcoin traded in the $18,000-$23,000 range over three days, with many sellers originally buying BTC at much higher prices, according to research firm Glassnode.
Short-term holders achieved a Profit ratio of output spent matches that of the 2018 bear market, meaning their gains have fallen overall, while some long-term holders experienced “deep capitulation” after buying at Bitcoin’s all-time high of nearly $69,000 and selling for closer to $18,000 apiece glass node.
The last three consecutive days have been the largest USD denominated realized losses in #Bitcoin Story.
Over $7.325 billion $BTC Losses were caught as investors spent coins that were accumulated at higher prices.
“Almost all wallet cohorts, from shrimp to whales, are now showing massive unrealized losses, worse than in March 2020. The least profitable wallet cohort holds 1-100 BTC,” Glassnode reported.
GlobalBlock cryptocurrency analyst Marcus Sotiriou said Bitcoin could be on the verge of a temporary bottom as the cryptocurrency has historically bottomed when its supply percentage of profit (PSP) is reached 40% to 50%.
Finally, we can see that when prices touched the lows of $17.7K yesterday, only 49% of the $BTC The offer was profitable.
Historical bear markets have bottomed out and consolidated with gains between 40% and 50% of supply.#Bitcoin Investors’ conviction will be seriously tested
“It’s important to note when looking at this historical data that Bitcoin has not experienced a period of sustained inflation,” Sotiriou said in a statement Monday. “We may be nearing a generational low as more forced liquidations occur, but we cannot be confident of a sustained uptrend until inflation convincingly slows.”
Yuya Hasegawa, an analyst at Japanese cryptocurrency exchange Bitbank, also sees more potential downsides as Bitcoin’s PSP is just over 50%.
“Bitcoin’s weekend decline wasn’t deep enough, to put it simply,” Hasegawa wrote in a report Monday. “Bitcoin still has downside potential, but if its PSP drops below 50% then the price could finally out below.”
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