Long-term Bitcoin holders are facing their biggest losses since the March 2020 capitulation and 2018-2019 bear market, but may have to continue to wait for relief.
According to the chain weekly report released by Glassnode on June 6, by calculating the value of Bitcoin deposited in the exchange, as of May 29, the cumulative realized loss of Bitcoin long-term holders (LTH) exceeded 0.006 of the market value. %.
Long-term investors are suffering their biggest losses since March 2020
However, if the historical loss pattern of previous bear markets repeats, this massive loss could persist for some time. From 2018 to 2019, LTH’s losses peaked at 0.015% of market capitalization, and these losses lasted for about a year. Glassnode currently only observes long-term investor losses for a month or so.
Glassnode wrote that LTH’s losses are now similar to previous bear markets, but would need to last longer to be truly comparable. The report states:
“LTH’s losses on Bitcoin held on exchanges are now on a scale comparable to previous bear markets.”
Glassnode defines LTH as holders who have not moved their bitcoins for at least 155 days. However, anyone who bought bitcoin before December 2019 will still be making a profit on their investment for now.
It's also worth noting that in both 2019 and 2020, prices bounced off their lows to recover quickly. Cointelegraph reported on Tuesday that there could be a capitulation event before any significant price recovery occurs.
Inflows into digital asset investment products such as bitcoin exchange-traded funds (ETFs) topped $100 million last week despite the bleak price outlook. The CoinShares report on June 6 highlighted that most of the inflows came from the Americas, with European investors remaining bearish for now.
CoinShares also pointed out the difference in inflows between Bitcoin and Ethereum. So far in 2022, Bitcoin has a net inflow of approximately $506 million, while Ethereum has a net outflow of $357 million. This shows that the current market sentiment towards ETH is much lower than that towards BTC.
According to data from CoinGecko, bitcoin prices have fallen 5.3 percent in the past 24 hours, trading at $29,567. Ethereum is down 6.7% over the same period, trading at $1,756, down 34% over the past month.
Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.
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