Long-time Bitcoin holders are beginning to suffer losses equal to those of previous bear markets. Glassnode believes that this could continue and even worsen.
Long-term Bitcoin holders are currently suffering their biggest losses since the capitulation in March 2020 and the bear market in 2018-2019. They still have to wait for relief.
According to Glassnode’s latest report, The Week Onchain from June 6 to May 29, the aggregate realized losses of long-term holders (LTH) of Bitcoin exceed 0.006% of the market capitalization.
However, the heavy losses may continue even further if historical loss patterns from previous bear markets show up repeatedly. From 2018 to 2019, LTH losses reached a peak of 0.015% of the market capitalization, they lasted about a year. The current losses have only been observed for about a month.
Glassnode writes that LTH losses are now similar to those of previous bear markets, but they will have to last even longer before they are really comparable.
“LTH losses on coins deposited on exchanges have now reached an order of magnitude comparable to previous bear markets. However, we don’t have the Duration component yet.“
Glassnode defines LTH as holders who have not moved their BTC for at least 155 days. Anyone who bought BTC before December 2019.
It is also worth noting that prices quickly recovered in both 2019 and 2020, when they bounced from their lows. Many are talking about the fact that there will probably be a capitulation before the price recovers significantly again.
Despite the gloomy price outlook, inflows into Bitcoin exchange-traded funds (ETFs) exceeded the $100 million mark last week. A report by CoinShares highlights that most of the inflows came from America. This suggests that European investors are still declining at the moment.
CoinShares also pointed out the difference in exchange flows between Bitcoin and Ethereum. BTC exchange inflows brought in a net worth of about $506 million by 2022, while ETH had net outflows of $357 million. This suggests that the market sentiment for ETH at the moment is much lower than that for BTC.
Over the past 24 hours, the BTC price has dropped by 5,3% and is at $ 29,581 at the time of writing. Ethereum has fallen by 6,7% and is currently trading at $1,756. Last month, ETH suffered a loss of 34%.
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