Key facts:
More than USD 2.4 billion per day were liquidated, since Friday, June 17.
Long-term holders sold 178,000 BTC in three days.
Intensive sales of bitcoin in the last three days yielded an all-time high in losses for a total of USD 7,325 million. This affected BTC holders acquired over a year ago, Glassnode stated in a series of tweets this Sunday, March 19. The losses occurred during the bitcoin price decline, over the same period, from $21,000 to $18,000.
“The last three consecutive days represent the largest loss made in bitcoin history,” Glassnode noted. About they changed hands 555,000 BTC that were acquired between USD 18,000 and USD 23,000. In addition, there were sales of BTC purchased at higher prices. glass node reports that between 20,000 BTC and 36,000 BTC were sold per daywhich were purchased in the first half of 2021 or earlier.
Although it was not the largest volume of coins transferred among those acquired a year ago, the sales momentum reflected that there was panic among this cohort of holderssays Glassnode.
In the chart, Glassnode highlights that there was daily losses greater than USD 2.4 billion in each of the last three dayswhich led to a total loss of more than USD 7,000 million.
Capitulation of long-term holders?
Long-term holders (LTH), characterized in the bullish phase of bitcoin as large accumulators liquidated about 178,000 BTC below $23,000 per BTC, in the mentioned period. This represents 1.31% of the total BTC held by LTHs, which currently stands at 13.6 million BTC.
In the graph of the supply in the hands of the LTH, it can be seen that the decrease of 178,000 BTC due to the weekend sales, places their retained BTC at the levels of September 2021.
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To evaluate the profits and losses of the LTH, with the decrease in prices, the two balances are presented in the following graph. Gains in blue and losses in orange and red are expressed as a percentage of bitcoin’s market capitalization.
Nowadays, LTHs have the equivalent of 0.0125% of the market capitalization at lossand 0.002% of capitalization in profit.
The fact of having reached USD 18,000 could reframe the question of whether bitcoin definitely hit its bottom. Even this Sunday, the price briefly touched the level of US 17,700.
Glassnode uses historical data to advance the fund hypothesis and uses the percentage of the supply that is currently in profit, which is 49%. “Historically, bear markets have bottomed out and undertake consolidation with 40% to 50% of supply in profit,” Glassnode concludes.