The market sell-off last week marked the biggest loss in history for Bitcoin investors, recording losses of around $7.3 billion.
The bloodbath that saw BTC drop from $21,000 to under $18,000 over the weekend resulted in the largest loss in dollars for bitcoin investors. Interestingly, long-term holders are among the most active sellers, some of which have seen losses of more than 70%.
Specifically, according to Glassnode data, around 555,000 Bitcoins were trading in the $18,000 to $23,000 range over the past three midweek days as BTC for the first time in 18 months lost the $20,000 threshold. Short-term holders achieved an Output Rate equal to the 2018 bear market.
BTC holders “saw” more than $7.3 billion in losses Friday through Sunday, currently “the largest dollar-denominated loss in bitcoin history.” This comes as the asset plunges from $21,000 to an 18-month low of $17,500 in the same time frame.
In fact, such investors have seen losses more than three times over the past five years – at the start of the 2018 bear market, the COVID-19 crash in March 2020, and from March 2020 to July 2021.
What was perhaps more surprising about the weekend sell-off was the behavior of long-term holders. Glassnode says such investors have processed 178,000 BTC at a price below $23,000, some of which have seen massive losses of 70%. Their total balance has dropped to September 2021 levels since they sold off about 1.31% of their total BTC holdings.
With Bitcoin dumping below $18,000, Glassnode noted that the return on asset supply has dropped to 49%. Historically, bear markets have bottomed with this percentage dropping to somewhere between 40% and 50%, which could indicate that the bottom could be in the current correction.
It should be noted that BTC has shown some positive signs, recovering over $3,000 in a single day as it is currently hovering above $20,000.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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