While Bitcoin is attempting to recover its losses after the recent FTX meltdown, data indicate that holders have almost erased 47% of the gains made during the bull market and have suffered losses of $213 billion over the last 365 days.
Data from on-chain data analytics Glassnode showed that 47% of bull market gains were erased as a result of the losses. The actual loss peak so far for the 2021–22 bear market is $213 billion, which is the present value of the figure. This indicates that bitcoin owners have locked in losses of this staggering level over the past 365 days.
According to Glassnode, these losses suggest that the gains seen throughout the bull market had seen a relative capital loss of almost 47%. These figures for the previous cycle are also highlighted on the chart. It appears that $117 billion was the greatest annual amount of realized profits recorded during the 2017–2018 bull market. Additionally, the loss realization peak in the related bear market of 2018–19 was noticed and was estimated to be around $56 billion.
Pump and Dump game?
Whales are also surrendering. Sentiment data published on Twitter by bitcoin analyst Ali Martinez indicated that approximately 33 whales holding 1,000–100,000 BTC had left the network and sold approximately 20,000 BTC in the past 96 hours.
According to Wu Blockchain, Grayscale’s Bitcoin Trust product, GBTC, is currently selling at a record-breaking 47.84% discount. The discount to the actual asset price shows strong negative investor sentiment. Genesis Trading, another subsidiary of Grayscale, is battling insolvency issues, which casts uncertainty over Grayscale’s parent business, Digital Currency Group.
At the time of writing, bitcoin is up more than two percent over the past 24 hours and is trading at around $17,226. The value of the cryptocurrency has fallen by 18% in the past month.
