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Main Hall - June 21, 2022

Bitcoin Investors Lock in Over $7,325,000,000 in Losses Amid Three Days of Deep Capitulation: Glassnode

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Crypto analytics firm Glassnode finds that over half a million Bitcoin (BTC) were sold at a loss as panic sweeps across the digital asset landscape.

In a new detailed analysis, Glassnode says that over a three-day period, Bitcoin sellers racked up more than $7.32 billion in losses as they scurried to the exits while unloading 555,000 BTC in the $18,000 to $23,000 price range.

“The last three consecutive days have been the largest USD [US dollar] denominated realized loss in Bitcoin history. Over $7.325 billion in BTC losses have been locked in by investors spending coins that were accumulated at higher prices.”

Source: Glassnode

The firm goes on to note that many long-term holders (LTHs) also chose to unload BTC that had sat dormant for over a year at a pace of 20,000 to 36,000 Bitcoin per day last week.

Glassnode also highlights that some investors who bought in at Bitcoin’s November 2021 all-time high (ATH) of $69,000 opted to sell at a staggering 75% loss.

“Investigating the profit and loss by long-term holders sending coins to exchanges, we can see a deep capitulation took place.

A few Bitcoin LTHs even bought the $69,000 top, and sold the $18,000 bottom, locking in -75% losses. Total LTH losses 0.0125% of market cap per day.”

Source: Glassnode

When it comes to the “pain” or losses felt by short-term holders (STH) capitulating, Glassnode reveals that only three previous instances were worse: first at the beginning of the 2018 bear market, followed by March 2020 and from May to July of last year.

Source: Glassnode

The firm adds almost all wallets in possession of Bitcoin also “hold massive unrealized losses,” with owners of between 1 BTC and 100 BTC staring at an unrealized loss equivalent to 30% of Bitcoin’s market cap.

Glassnode concludes its BTC analysis by pointing out that less than half of the Bitcoin supply was in the green, which historically coincides with cycle bottoms.

“We can see that as prices hit the $17,700 lows yesterday, just 49% of the BTC supply was in profit.

Historical bear markets have bottomed and consolidated with between 40% and 50% of supply in profit.

Bitcoin investor conviction is seriously being put to the test.”

Source: Glassnode

At time of writing, Bitcoin is up from its weekend lows and currently trading sideways with a price tag of $20,326.