Bitcoin Investors Lost $7.3 Billion In Three Days: Analysis

Time Stamp: June 21, 2022 1:26 PM
Source Node: 1507651

Bitcoin investors lost $7.3 billion in three days alone marking the largest realized loss ever for the number one cryptocurrency by market cap so let’s read more in our latest Bitcoin news.

The Bitcoin investors lost $7.3 billion in three days of locked-in losses and about 555,000 BTC were traded between the $18K and $23K range with most sellers having purchased BTC at higher prices according to Glassnode. The short-term holders reached a spent OutPut Proft ratio equal to one of the 2018 bear markets which means the profits are down as well while some long-term holders saw a deep capitulation after purhcasing at the BTC ATH of $69,000 and selling for closer to $18,000:

“Almost all wallet cohorts, from Shrimp to Whales, now hold massive unrealized losses, worse than March 2020. The least profitable wallet cohort hold 1-100 BTC.”

GlobalBlock crypto analyst Marcus Sotiriou said that BTC could be near a temporary bottom because the cryptocurrency has already bottomed out historically when the percent supply in profit is 40% to 50%:

“It is important to note when looking at this historical data, that Bitcoin has not gone through a period of persistent inflation. We may be edging closer to a generational bottom as more forced liquidations occur, but we can not be confident of a sustained uptrend until inflation convincingly slows down.”

The analyst at Japanese exchange BitBank Yuga Hasegawa, saw more potential downside given that the BTC PSP is above 50%. Hasegawa added:

“Bitcoin’s weekend dip was, to put it simply, not deep enough. Bitcoin still has a downside potential but if its PSP goes below 50%, then the price could finally bottom out.”

As recently reported, The crypto markets are in green again with several altcoins registering double-digit gains. Following last week’s massacre and especially during the weekend, the alternative coins started their recovery sessions. Ethereum was among the biggest losers and at one point, ETH lost over 50% in value in a week and dumped all the way to $900. Yesterday there was some relief to the second biggest crypto which reclaimed $1000 and marked another daily increase that pushed it above $1100. The biggest gainers from the larger cap altcoins were Solana, Avalanche, Chainlink, Polkadot, and Polygon. The organization behind Cardano said it decided to postpone the Vasil upgrade to have time to prepare even better.

Time Stamp:

More from DC Forecasts