According to the report published by blockchain analysis company Glassnode, sellers show signs of fatigue, Bitcoin (BTC) It creates conditions similar to a trough.
According to the analysis company, realized losses, or in other words, losses incurred by selling assets, show the extent of investor capitulation. Their size can be graphed using Blockchain data.
According to Glassnode, the May collapse of stablecoin terraUSD (UST) and its accompanying token LUNA triggered a wave of realized losses totaling $28 billion in 30 days and cryptocurrency Realized losses reached a record level of 36 billion dollars in 30 days, with prices falling below the 2017 record on June 18.
“The Number of Investors HODLing in Bitcoin Reaches Its Peak Amount”
As individual and short-term investors are cleared from the market during these mass sales, the density of “HODLers” or price-insensitive long-term investors increases.
According to the report, the more HODLs there are, the more stable crypto prices become and the more likely the market will bottom out.
More than 80% of the dollar wealth stored in Bitcoin is now held for more than three months, indicating that the selling waves in May and June have exhausted nearly all short-term investors.
“HODLer Ratio Rebounds to Previous Bear Lows”
According to Glassnode, this rate coincides with the data at the end of the 2012, 2015 and 2018 bear market lows, when the dollar wealth held for more than three months was over 80%.
Glassnode added to its report:
“In an environment of extremely challenging macroeconomic and geopolitical turmoil, Bitcoin is reaching peak investor concentration by high-confidence HODLers, making it quite plausible that a true bottom could be underway.”
*Not investment advice.