Bitcoin (BTC) Long-Term Holders Are Finally Giving Up: Report

Bhushan Akolkar
June 20, 2022
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Will Bitcoin Price Recover After $1.7 Billion Liquidation Event?

The world’s largest cryptocurrency Bitcoin witnessed another major weekend of a bloodbath as the BTC price took a dive under $18,000 for the first time. There have been major liquidations taking place with long-term Bitcoin holders dropping the towel and giving up.

As per on-chain data Glassnode, there have been Bitcoin liquidations to the tune of $2.42 Billion every day, for the last three consecutive days. The data provider noted:

“The last three consecutive days have been the largest USD denominated Realized Loss in Bitcoin history. Over $7.325B in $BTC losses have been locked in by investors spending coins that were accumulated at higher prices”.

Courtesy: Glassnode

Furthermore, in the last three days, more than 555K Bitcoins have changed hands in the price range between $18,000-$23,000. Interestingly, long-term holders holding BTC for 1yr+, who accumulated coins in H1 2021 or earlier, started panicking, flooding the exchanges with 20K to 36K Bitcoins every single day.

Bitcoin (BTC) Long-Term Holder Balances Drop

As per data from Glassnode, long-term holders sold more than 178K Bitcoins after the price dropped under $23,000. This represents 1.31% of their total holdings. Further, it also takes the aggregate LTH balance to September 2021 levels.

Courtesy: Santiment

Glassnode also mentions signs of major capitulation taking place. It writes:

“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 top, and sold the $18k bottom, locking in -75% losses. Total LTH losses 0.0125% of Market Cap per day”.

Besides, Glassnode also added that Bitcoin miners have also been under stress with their balances stagnating from the 2019-2021 accumulation period. Last week, BTC miners spent 9K from their treasuries and are still holding more than 50,000 Bitcoins. The Bitcoin hashrate has also dropped 10% from its all-time high.

Courtesy: Glassnode

Apart from long-term holders, the short-term holders have also seen major losses. Glassnode explains: “If we assess the damage, we can see that almost all wallet cohorts, from Shrimp to Whales, now hold massive unrealized losses, worse than March 2020”.

The data provider explains that as the BTC price tanked under $18,000, only 49% of the total Bitcoins were in profit.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.