Data from analysis house Glassnode indicates that, in recent days, investors have exited their positions in Bitcoin (BTC), valued at $ 7.3 billion. This is the largest dollar-denominated loss in the asset’s history.
According to Glassnode, realized losses are the total loss (with US dollar value) of all currencies exchanged whose price at the last move was greater than the price at the current move. This tool can be used to measure how many coins were moved at any given price.
The analysis house said that around 555,000 BTC was traded at prices between $18,000 and $23,000, strong support and resistance levels, respectively, for the asset in recent days. Data show that losses ranged from $1.3 billion to $2 billion a day.
Long-term holders or those who had BTC for more than 155 days liquidated more than 178K BTC with prices lower than $23K USD. However, these liquidations were only 1.31% of the total.
Glassnode claimed that some of these holders bought the coins at $69,000, Bitcoin’s all-time high, and sold them for $18,000, taking a loss of nearly 75%.
These liquidations may have contributed to Bitcoin’s drop below $20K over the weekend. BTC reached $18,319 and its market capitalization plummeted to around $350 billion, down 73% from the peak recorded in November.
Bitcoin found resistance at $21,000 on Monday morning after rallying to see $2,000 added to prices in the last 24 hours. Charts show that the $21K level has served as support for the past few weeks.
In the general futures market, Bitcoin futures have accumulated $436 million in liquidations over the past three days. According to Coinglass, long options — bets on higher prices — made up the majority of those losses.
This move came after Bitcoin’s debacle last week amid a general stock market slump, with inflation exceeding analysts’ estimates and with the Federal Reserve (Fed) raising rates by 75 basis points — the highest in 28 years. .
Meanwhile, analysts at Glassnode said data at current price levels suggest a floor in the market. “We can see that with prices dropping to $17K yesterday, only 49% of the BTC offering went into profit,” the company said on Twitter, citing the Offer Profit Percentage tool.
“Historical downtrend markets bottomed out and consolidated with 40% to 50% supply at a profit,” Glassnode said.
However, traders remain cautious. Some say macroeconomic conditions must improve and the Fed’s aggressive approach to monetary policy must ease before crypto markets see such a floor.
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