The world’s largest crypto Bitcoin (BTC) continues to face massive selling pressure and is currently down over 8% moving closer to $20,000. This week has been the week of massive sell-off and liquidations. On-chain data provider Glassnode explains:
“Bitcoin investors have locked in the largest USD denominated Realized Loss in history last week. The $BTC spent on-chain this week realized net losses of over $4.23B. This eclipses all major sell-offs in 2021, and is 3x larger than March 2020?.
Furthermore, Glassnode explains the realized losses faced by short-term holders (STHs) to the tune of 0.01% of the Market Cap per day. But the data provider explains: “Whilst significant, these STH losses are not as large as major sell-offs in the last 5yrs”.
On the other hand, Bitcoin long-term holders have realized major losses equal to 0.007% of the Market Cap per day. It adds: “This is almost as large as March 2020, and is the first major LTH capitulation event in the 2021-22 cycle”.
More Bitcoin Liquidations Ahead?
While Bitcoin had a relief rally after the Fed announcement on Wednesday, it failed to retain its momentum. In the last 24 hours, Bitcoin is seeing another major sell-off trading on tenterhook support of $20,000.