Crypto market faced one of worst weekends in its history
The past weekend was one of the worst for the cryptocurrency industry as we saw unusual volatility that pushed the price of the first cryptocurrency below 18,000 $, making Bitcoin even less profitable for investors and pushing the value of the realized loss to a new ATH.
Reportedly, over $7.325 billion worth of BTC losses had been tracked by on-chain aggregators. A large portion of investors spent their coins previously gained at higher prices. Such a large percentage of investors at a loss could be a worrying sign and may aggravate previously existing panic on the market.
Unfortunately, the main source of the sell-off was long-term investors, as they brought in around 180,000 BTC at prices well below $23,000, pushing the price of the first cryptocurrency below the all-time high of 2017.
The coins dumped on the market represented around 1.3% of their total holdings. After dropping a portion of their LTH portfolio, their holdings returned to levels of September last year.
Looking at the profits and losses of LTG wallets that sent money to centralized exchanges for fulfillment, we can see direct signs of capitulation as they were rapidly selling their funds, even with jaw-dropping 75% losses. Such irrational behavior by long-term holders is most likely related to panic in a market that now expects Bitcoin to drop below $15,000 for some reason.
Previously, U.Today covered issues that Bitcoin and crypto miners are facing: with rising electricity costs and the rapidly dropping value of most cryptocurrencies, miners have no other choice but to sell their assets at a loss and turn off their machines.
