Bitcoin Investors Lose Over $7 Billion in 3 Days, Biggest Loss in History

Data from analyst house Glassnode indicates that, in recent days, investors have been exiting their positions in Bitcoin (BTC), valued at $7.3 billion. This is the largest dollar-denominated loss in the asset’s history.

According to Glassnode, realized losses are the total loss (with US dollar value) of all currencies traded whose price during the last move was higher than the price during the current move. This tool can be used to measure the number of coins moved at a given price.

The analytics house said that around 555,000 BTC were traded at prices between $18,000 and $23,000, strong support and resistance levels, respectively, for the asset in recent days. Data shows losses ranged from $1.3 billion to $2 billion a day.

Long-term holders or those who had held BTC for more than 155 days liquidated over 178,000 BTC with prices below $23,000. However, these liquidations only accounted for 1.31% of the total.

Glassnode claimed that some of these holders bought the coins at $69,000, Bitcoin’s all-time high, and sold them for $18,000, recording a loss of almost 75%.

These selloffs may have contributed to Bitcoin falling below $20,000 over the weekend. BTC hit $18,319 and its market capitalization fell to around $350 billion, down 73% from the peak recorded in November.

Bitcoin found resistance at $21,000 on Monday morning after rallying to see $2,000 added to prices over the past 24 hours. The charts show that the $21,000 level has acted as support for the past few weeks.

In the general futures market, Bitcoin futures have racked up $436 million in liquidations over the past three days. According to Coinglass, long options — bets on higher prices — accounted for the majority of those losses.

The move came after Bitcoin’s debacle last week amid a general stock market crash, with inflation beating analysts’ estimates and the Federal Reserve (Fed) raising rates by 75 basis points – the most raised in 28 years. .

Meanwhile, Glassnode analysts said data at current price levels suggests a floor in the market. “We can see that with prices dropping to $17,000 yesterday, only 49% of the BTC supply generated profit,” the company said on Twitter, citing the Offer Profit Percentage tool.

“Historic downtrend markets bottomed and consolidated with 40%-50% supply at profit,” Glassnode said.

However, traders remain cautious. Some say macroeconomic conditions need to improve and the Fed’s aggressive approach to monetary policy needs to ease before crypto markets see such a low.

How far will cryptocurrencies go? What’s the best way to buy them? We have prepared a free course with step by step. Click here to watch and receive InfoMoney’s cryptocurrency newsletter

Leave a Comment