Quick Take
Bitcoin’s recent price dip to around $54,000 has triggered one of the largest realized losses since the FTX collapse, specifically the fifth biggest realized loss since. This significant sell-off is primarily attributed to panic selling spurred by news related to Mt. Gox.
On July 5, within a one-hour resolution, Bitcoin’s aggregated realized loss soared to $814 million. $587 million of these losses were incurred by short-term holders who had held Bitcoin for one to three months. This demographic’s reaction to market turbulence highlights the vulnerability of short-term holders compared to their long-term counterparts.
The sell-off highlights a pattern observed on July 4, where short-term holders were found to be holding 2.5 million BTC at a loss. This indicates that these holders pose a greater risk to a Bitcoin correction than the impact of Mt. Gox.
Despite the turmoil, long-term holders exhibited resilience, contributing minimally to the selling pressure. This stability from seasoned investors indicates confidence in Bitcoin’s long-term prospects, contrasting sharply with the short-term market fluctuations driven by newer entrants reacting to immediate news events.
| Cohorts | $ Values |
|---|---|
| aggregated | 813,775,780 |
| 1m_3m | 586,946,540 |
| 1d_1w | 102,135,624 |
| 24h | 60,121,075 |
| 1w_1m | 46,528,219 |
| 3m_6m | 17,918,197 |
| 2y_3y | 93,782 |
| 3y_5y | 31,089 |
| 6m_12m | 1,051 |
| 1y_2y | 202 |
Source: Glassnode
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