Bitcoin (BTC) investors suffer $7.3B losses in just three days — BTC reclaims $20K

Key Takeaways:

  • Bitcoin holders saw unprecedented realized losses of over $7.3 billion in three days.
  • Over the weekend BTC dropped to the lowest level since Dec. 2020, trading below $20K.
  • Crypto analyst sees a further drop ahead, with a target at $16K.
image from medium.com
image from medium.com

YEREVAN (CoinChapter.com) – Bitcoin (BTC) investors suffered the largest U.S. dollar-denominated “Realized Loss” in history, according to data provided by Glassnode.

“Over $7.325B in BTC losses have been locked in by investors spending coins accumulated at higher prices,” the data analytics platform specified.

Notably, a realized loss is the loss that is recognized when assets are sold for a price lower than the original purchase price.

Bitcoin long-term holders capitulate

Approximately 555,000 BTC had changed hands between $18,000 and $23,000. In detail, Bitcoin holders with coins accumulated during the first half of 2021 or earlier panicked, selling their assets.

Interestingly, long-term Bitcoin holders facilitated the selloff. Excerpts from Glassnode’s social media thread:

Bitcoin Long-Term Holders [LTH] contributed to the sell-side, liquidating around 178k BTC at prices below $23k. This represents around 1.31% of their total holdings and returns aggregate LTH balance to Sept 2021 levels.

added Glassnode.

Investigating the profit and loss by LTHs sending coins to exchanges, Glassnode concluded that a “deep capitulation” occurred. Furthermore, the platform estimated that several long-term holders “bought the $69k top and sold the $18k bottom,” locking in a whopping 75% loss.

Losses sustained by Bitcoin LTHs. Source: Glassnode
Losses sustained by Bitcoin LTHs. Source: Glassnode

As a result of the FUD and panic, the realized losses reached over $7.3 billion in the previous three days, a record high for the flagship crypto.

Bitcoin (BTC) realized losses at record high. Source: Glassnode
Bitcoin (BTC) realized losses at a record high. Source: Glassnode

More pain ahead for BTC holders?

Meanwhile, Bitcoin struggled to stay afloat at the $20,000 support over the weekend. As a result, the flagship cryptocurrency traded just below the said line in the Asian Pacific session on Monday, June 20.

Bitcoin (BTC) daily price action headed toward $16K. Source: TradingView.com
BTC/USD daily price chart. Source: TradingView.com

However, an analyst with a Twitter handles CryptoCapo predicted a further decline in Bitcoin’s future, estimating the target price at approximately $16,000. The analyst based his assumption on the premise that BTC repeatedly used former supports as resistance after dropping from its all-time high of $69,000 in Nov. 2021.

The analyst noted that the digital asset broke the support at $31,000-32,000, later retesting it as resistance.

Likewise, BTC exhibited the same behavior after losing the $20,000 support, said CryptoCapo. Moreover, low trading volumes on Bitcoin’s daily chart testify to the prediction as the flagship crypto returns to Dec. 2020 levels.

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Bitcoin, Bitcoin (BTC) investors suffer $7.3B losses in just three days — BTC reclaims $20K

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