Data from Glassnode shows more than $7 billion in Bitcoin losses was realized within three consecutive days, the most in the history of the crypto.
Highest Ever Bitcoin Loss Realization Took Place During The Last Few Days
Latest on-chain data released by Glassnode shows BTC investors took a heavy amount of losses in the past few days.
The relevant indicator here is the “realized loss,” which measures the total USD amount of losses that Bitcoin investors are taking right now.
This metric calculates this value by looking at the transfer history of each coin being sold right now to see what price it was last moved at.
If the last selling value of a coin was more than the current Bitcoin price, then that specific coin realized some loss.
When the value of the realized loss spikes up, it means holders are currently selling a large amount of underwater supply.
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Such a trend, when prolonged over a period, can suggest BTC investors may be going through a capitulation phase at the moment.
Now, here is a chart that shows the trend in the Bitcoin realized loss over the last few years:
The value of the metric seems to have been quite high in recent days | Source: Glassnode on Twitter
As you can see in the above graph, Bitcoin investors have realized a pretty high amount of losses in the last few days.
In fact, spikes of the indicator on three straight days during the past week corresponded to a loss taking of more than $7 billion.
This value of loss realization is the highest it has been in the history of the crypto over a period of three consecutive days.
Additional data from the analytics firm shows that long-term holders (LTHs) also took a deep capitulation during this record loss taking.
Looks like the long-term holders realized a large amount of losses recently | Source: Glassnode on Twitter
Some of these LTHs who capitulated bought at the $69k top and sold at the $18k low, thus realizing a massive 75% in loss.
Generally, LTHs are the least likely bunch to sell and as is visible in the chart, heavy loss taking from them has only occurred around bottoms.
At the time of writing, Bitcoin’s price floats around $20.5k, down 13% in the past week. The below chart shows the trend in the value of the coin over the last five days.
The price of BTC looks to have jumped back up in the last two days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com