The Continued Price Decline Drives Panic
The leading global cryptocurrency, Bitcoin, saw yet another weekend of terrible decline. In the midst of the market bloodbath, Bitcoin price took a heavier hit to fall under $18,000. The latest fall is the lowest the number 1 digital asset would be falling to.
There has now been a series of liquidations from investors. Major long-term investors of the top asset have been throwing up their hands in unprecedented ways. Most of them simply drop the towel on their investments and give up.
According to reports from Glassnode, Bitcoin liquidations have been worth around $2.42 billion. It has been a daily affair for the coin and its holders over the past three days.
The report said the past three days have seen the largest loss denominated in USD for Bitcoin. It is the largest in the asset’s history. More than $7.325 billion in losses got locked by investors as they were forced to expend assets got at high costs.
Importantly, over 555 thousand BTC units have been transacted in the course of the past three days. The total worth of those transactions was between $18,000 to $23,000 per Bitcoin.
Long-term Bitcoin holders who have held it for a year and above were sent panicking. They consequently flooded the crypto exchange market with Bitcoin worth between $20,000 to $36,000 daily.
BTC Long-Term Investors Get Dropped Balances
According to further reports got from Glassnode, long-term holders did away with over 178,000 Bitcoin. This was following the price crash below $23,000. The sales amount to about 1.31% of their overall asset holding.
Furthermore, it pushes the aggregate balance on LTH down to the levels they were in September 2021. Glassnode equally stated that there were signs of a significant capitulation going on.
The platform stated that it observed the capitulation while it was carrying out its investigations. The investigations show that some long-term holders bought as high as $69,000 and sold at $18,000. That amounted to a loss of about 75% for that set of holders.
The total loss on long-term holders amounts to 0.0125% of the market capitalization. It is what the asset contends with on a daily basis.
Aside from that, Glassnode also stated that Bitcoin miners have been going through some significant stress. Their balances have been stagnant from the accumulation time between 2019 and 2021.
In the past week, the miners expended up to 9,000 from their reserves and they still hold over 50,000 Bitcoins. The asset’s hashrate has equally fallen from its all-time height by 10%.
Aside from long-term holders, short-term holders have equally seen their share of losses. Glassnode has it that if well-assessed, all wallet categories have incurred heavy losses. The losses have, thus far, been worse than that of March 2020.
Glassnode explained further that while Bitcoin price dropped below $18,000, just 49% of it remained within profit.