In the cryptocurrency industry, it was a bad weekend as we witnessed unprecedented volatility that pushed the price of the first cryptocurrency below $18,000, further damaging investors’ profits and pushing the realized loss value to a new record high.
According to reports, the on-chain aggregators tracked losses worth over $7.325 billion. It appears that many investors sold coins previously gained at a higher price. A large proportion of investors is at a loss, which is a concern and can aggravate existing panic in the market.
Long-term investors accounted for a majority of the sell-off, contributing around 180,000 BTC at prices far below $23,000, pushing the price of the first cryptocurrency below its all-time high in 2017.
Approximately 1.3% of their total holdings were sold on the market. Their holdings in LTH returned to their September last year levels after dropping a portion of their portfolio.
When we examine the profit and loss of LTG wallets that sent money to centralized exchanges to realize, we may see direct evidence that they were capping out, as they were rapidly selling their funds at mind-blowing losses of 75%. This irrational behavior is likely owing to the panic in a market that expects Bitcoin to go lower than $15,000 for whatever reason.