Long-term bitcoin holders are sitting on their biggest losses since the March 2020 capitulation and the 2018-2019 bear market, but they may have to wait for relief.
According to Glassnode, the total loss received from long-term holders (LTH) of bitcoin (BTC) exceeded 0.006% of the market capitalization as of May 29, calculated by measuring the value of coins deposited on exchanges. the week onchen Report from 6th June
However, dramatic losses may continue for some time if the historical loss pattern from past bear markets is to be repeated. From 2018 to 2019, LTH losses peaked at 0.015% of the market cap, and those losses extended for almost a year. The current losses for the long term have been observed only for one month.
Glassnode writes that LTH losses are now similar to previous bear markets, but they need to continue for a long time before they can be truly comparable. The report stated:
“LTH losses on coins deposited in exchanges have now reached a magnitude comparable to previous bear markets. However, we do not yet have a duration component.”
Glassnode defines LTH as a holder who has not moved their coins for at least 155 days. However, anyone who bought BTC before December 2019 will still rely on their investment… for now.
It is also worth noting that both in 2019 and 2020, the price recovered sharply, bouncing off its lows. Cointelegraph reported on Tuesday that a capitulation event could occur before any significant price recovery.
Despite a disappointing price outlook, an influx of digital asset investment products such as bitcoin exchange-traded funds (ETFs) topped $100 million last week. A CoinShares June 6 report highlighted that most of the inflows were from the US, suggesting that European investors are still in a bearish phase.
related: Amid Crypto Bear Market, Institutional Investors Raise Bitcoin: CoinShares
CoinShares also pointed out the difference in exchange flows between BTC and Ethereum (ETH). BTC exchange inflows have so far been valued at around $506 million as of 2022, while net outflows of ETH are $357 million. This suggests that the market sentiment for ETH is much lower than that of BTC at the moment.
According to data from CoinGecko, the bitcoin price is down 5.3% over the past 24 hours to trade at $29,567. Ethereum is down 6.7% over the same period, trading at $1,756, down 34% over the past month.