Bitcoin Hits $21K, Investors Lose $7B

According to data from analytics firm Glassnode, investors have sold bitcoin (BTC) holdings worth a record $7.3 billion in the last few days, resulting in the largest dollar-denominated losses in the asset's history.

If a coin's price during its last movement was greater than its current price, then it has "realized loss," according to Glassnode. Any pricing point may be measured with this device.

The price range of $18,000 to $23,000 has been a significant support and resistance level for the asset over the previous few days, according to the business. According to the statistics, each day's losses were between $1.5 billion and $2 billion.

btc invest
Realized losses ballooned to a record $7 billion in the past few days. (Glassnode)

Long-term holders, or those who have held BTC for more than 155 days, sold approximately 178,000 BTC at prices below $23,000, according to the statistics. These liquidations, however, amounted for only 1.31 percent of overall holdings.

According to blockchain statistics, some of these holders bought their coins at $69,000, bitcoin's lifetime high, then sold them at $18,000, a loss of over 75%, according to Glassnode.

Such liquidations may have led to bitcoin's drop below $20,000 over the weekend. Bitcoin plunged to as low as $18,319 per coin, while its market value fell to over $350 billion, a 73 percent drop from its all-time high in November, as previously reported.

Bitcoin encountered resistance above $21,000 on Monday morning, following a relief rally that added $2,000 to prices in the previous 24 hours. Price charts reveal that the $21,000 level has performed as support in recent weeks.

Bitcoin rose above $21,000 on Monday amid a brief relief rally. (TradingView)
Bitcoin rose above $21,000 on Monday amid a brief relief rally. (TradingView)

Bitcoin futures have received $436 million in liquidations in the broader futures markets over the last three days. According to Coinglass statistics, long options, or bets on rising prices, absorbed the majority of these losses.

The decision comes after bitcoin plummeted sharply last week, along with the broader equities market, as inflation surpassed expert expectations and the US Federal Reserve (Fed) raised rates by 75 basis points, the most in 28 years.

Meanwhile, Glassnode experts believe current pricing levels indicate a market bottom. "As prices hit $17,000 lows yesterday, we can see that just 49 percent of the $BTC supply was in profit," the business claimed in a tweet, citing its Percent Supply in Profit tool.

"Historically, bear markets have bottomed and consolidated with between 40% and 50% of supply in profit," Glassnode explained.

However, traders remain wary, with some claiming that macroeconomic circumstances must improve and the Fed's aggressive monetary policy must be eased before crypto markets can reach a bottom.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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