Bitcoin (BTC) long-term holders finally selling off: Report

The price of the world’s most popular cryptocurrency, Bitcoin, fell below R289K for the first time this weekend. Long-term Bitcoin holders have begun selling off their holdings in high volumes.

Glassnode’s on-chain data shows that every day for the last three days, R38.7 billion of Bitcoin has been liquidated. According to the source of the information:

“The last three consecutive days have been the largest USD denominated realized losses in Bitcoin history.” Over R117.3b in $BTC losses have been locked in by investors spending coins that were accumulated at higher prices.”

Furthermore, over 555K Bitcoins have been traded in the R288K-R368K price range in the last three days. People who had been holding on to their Bitcoins for more than a year started worrying and flooding exchanges with between 20K and 36K per day.

Long-term Bitcoin (BTC) owners’ balances drop

Long-term investors sold more than 178K bitcoins after the price fell below R368K, according to statistics from Glassnode. This is equivalent to 1.31% of their whole portfolio. In addition, it raises the total LTH balance to the level of September 2021. It’s also worth noting that Glassnode mentions indicators of a significant capitulation. It states:

“Investigating the profit and loss by long-term holders sending coins to exchanges, we can see a deep capitulation took place. A few #Bitcoin LTHs even bought the $69k (R1.1M) top, and sold the $18k (288K) bottom, locking in -75% losses. Total LTH losses 0.0125% of market cap per day”

In addition, Glassnode stated that Bitcoin miners have also been stressed since their balances have remained stagnant since the accumulation period of 2019–2021. In the last week, Bitcoin miners spent 9K from their treasuries and still have more than 50,000 bitcoins in their wallets. As a result, the Bitcoin hash rate has plummeted 10% from its all-time high.

Short-term investors have also suffered significant losses. According to Glassnode, 

Only 49 % of all Bitcoins were in profit when the price of BTC fell below R288K, according to the data provider.

Bitcoin (BTC) long-term holders finally selling off: Report

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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