The bloodbath that saw BTC drop from $21,000 to below $18,000 over the weekend has resulted in the largest realized USD-denominated loss for bitcoin investors. Interestingly, long-term holders were among the most active sellers, some of whom posted losses of over 70%.

Longest realized losing streak denominated in USD

After posting the longest losing streak in terms of weekly red candles a few weeks ago, BTC’s ongoing bearish streak has another record low, this time for investors taking losses.

According to data from Glassnode, BTC holders “locked in” over $7.3 billion in losses from Friday to Sunday, which is now the “largest USD-denominated realized loss in bitcoin history.” This came amid the asset’s drop from $21,000 to an 18-month low of $17,500 in the same time frame.

The analytics firm reported that around 555,000 BTC had changed hands between $18,000 and $23,000. Unsurprisingly, short-term holders sold off substantial amounts, with STH-SOPR “reaching levels equivalent to the November 2018 bear market capitulation event.”

In fact, such investors posted further losses only three times in the last five years: at the start of the 2018 bear market, the COVID-19-induced crash in March 2020, and from May to July 2021.

What is perhaps most surprising about the weekend sell-off is the behavior of long-term holders. Glassnode said such investors dumped 178,000 BTC at prices below $23,000, some of which posted massive losses of over 70%. Their aggregate balance has dropped to September 2021 levels since they sold around 1.31% of their total holdings.

But the (possibly) good news?

With bitcoin dumping below $18,000, Glassnode noted that the percentage of the asset’s supply in profit had dropped to 49%. Historically, bear markets have bottomed out with this percentage falling between 40% and 50%, which could indicate that the current correction could be bottoming out.

The analytics resource outlined the importance of these levels now, adding: “Bitcoin investors’ conviction is being seriously tested” now.

It is worth noting that BTC has already shown some positive signs, recovering over $3,000 in a day as it is currently hovering around $20,000.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off Binance Futures first month fees (terms).

PrimeXBT Special Offer: Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.





This post The loss made by the largest investors in the history of Bitcoin just happened, but there is good news

was published first on https://cryptopotato.com/the-largest-investors-realized-loss-in-bitcoin-history-just-happened-but-theres-good-news/

Author

Write A Comment