Bitcoin

Long-Term Bitcoin Holders Now in Loss! Worst is Yet To Come – Hints Onchain Reports

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Jun 7, 2022

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The stress and pain the Long-Term holders are suffering for a long time would be continued further as they are beginning to suffer losses from previous bear markets. The long-Term holders are dealing with their largest losses since the 2018-19 bear market and 2020 capitulation, and are still waiting for the relief. 

According to Glassnode’s ‘The Week Onchian report’ from June 6, the aggregated realized losses from long-term holders (LTH) of Bitcoin (BTC) exceeded 0.0006% market cap. 

Hence these dramatic losses may continue to some extent if the historic loss patterns from previous bear markets are to be repeated. Whereas the LTH losses have reached the level of 0.015% market cap, which are further extended for the next consecutive year. 

State of Long-Term Bitcoin Holders

Long-Term investors are experiencing the bear market since just last month. the Glassnode further reports the LTH Losses unless they are truly comparable to the bear market, only then they can resemble. The report states that: 

“The LTH losses on coins deposited to exchanges have now reached a magnitude comparable to previous bear markets. However, we do not yet have the duration component.” 

The Glassnode defines LTH as a holder that doesn’t move their coins at least for 155 days. Anyone that bought BTC before December 2019 will still be up on their investment from now on.

Over the years 2019 and 2020, the prices have recovered rapidly by bouncing off their lows, there will likely be a capitulation event before any significant price recovery can take place. 

Inflows to digital assets investment products have topped $100 million last week, despite the gloomy price outlook. The recent report of CoinShares says that most of the inflows reported were from the Americas, suggesting European investors are still bearish at the moment. The report also stressed the noticeable differences in exchange flows between BTC and Ethereum (ETH). 

Inflows to the largest exchange BTC have netted about $506 million through 2022, whereas ETH has had net outflows of $357 million. This proves the market sentiment for ETH is much lower than the BTC at the moment. 

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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