Bitcoin, the largest cryptocurrency is showing some positive signs above the $20,000 support. At press time, BTC is trading up around the $21k mark, showing a 5% increase. However, the risk remains largely as on-chain data shows investors exited positions that had acquired BTC at very high prices over the past three-day period.
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Bitcoin market participants lined up near a historically high financial pain threshold. According to analytical firm Glassnode, investors have pulled out of bitcoin positions worth a record $7.3 billion in the past three days. In fact, the largest USD-denominated real loss in the history of BTC has been recorded over the past three consecutive days.
Source: Glassnode
According to research firm Glassnode, investors quickly sold around 555,000 BTC in the $23,000-$18,000 price range as the bitcoin price crashed as many sellers originally bought BTC at much higher prices. Every day the deficit here ranged between $1.5 billion and $2 billion.
Source: Glassnode
What about ‘loyal’ holders?
Even long-term holders parted ways with the king’s coin. In particular, it Involved Long Term Holders (LTH) hold 178,000 BTC, with some of the coins selling for $69,000 – a price marking bitcoin’s all-time high in November 2021. This group of sellers took a -75% hit on their investment.
Additional data from the analytics firm shows that long-term holders (LTH) also made a deep surrender during this record loss.
Examining the profit and loss by long-term holders sending coins to the exchanges, we can see that a deep surrender took place.
some #bitcoin LTH also bought the top at $69k, and sold the bottom at $18k, causing a -75% loss.
The total LTH loss per day is 0.0125% of the market cap.
5/9 pic.twitter.com/bTCvuciUMX
— glassnode (@glassnode) June 19, 2022
Apart from this, the Short Term Holders (STH) also suffered heavy losses. STH-SOPR reached a level similar to the capitulation event of the bear market in November 2018.
Source: Glassnode
Almost all wallet groups, from ‘shrimp to whale’, were facing massive unrecovered losses, even worse than in March 2020. Currently, the least profitable wallet group holds There has been an unrealized loss of 1-100 $BTC and equal to 30% of the market cap. To add to this dire situation, BTC 2017 fell below $20k ATH, giving rise to another narrative.
bitcoin may be near one temporary bottom out Point because the cryptocurrency has historically bottomed out when its Percentage Supply Gain (PSP) is 40% to 50%.
Source: Glassnode
Needless to say, in such a situation, the punishment of BTC investors is being seriously tested.
