🕵️♂️Glassnode report: Bitcoin's recent crash caused a $520 million investment loss, and analysts will help you "clear the fog" to see the truth
In its latest weekly report, Glassnode, an on-chain analysis agency, pointed out that in a recent market crash, Bitcoin investors lost a total of $520 million. What exactly caused this phenomenon? Let's analyze and interpret it together.
In its latest weekly report, Glassnode analyzed the recent trend of Bitcoin's "actual losses". What is "actual loss"? Simply put, it is the total loss realized by BTC investors through selling every day, that is, by comparing the historical transaction price of each BTC token, if the previous selling price is higher than the current selling price, it is judged as a loss.
As can be seen from the chart, this indicator rose sharply at the beginning of this month, causing investors to lose a total of $520 million. The main reason behind this loss was that the price of Bitcoin plummeted to $93,000. This is one of the biggest events in the current cycle, second only to the peak amount of $1.3 billion in yen carry trade liquidation.
However, from a historical cycle perspective, this large-scale loss realization is actually a good thing for Bitcoin. Because in this case, Bitcoin tends to transfer from those investors who can't hold it to those who are willing to hold it for a long time. These long-term investors are more willing to hold, so the selling pressure will gradually disappear and the price of Bitcoin will slowly stabilize.
Therefore, although the loss this time looks scary in terms of the dollar amount, if measured in BTC, it is actually within the standard range of the cycle. In other words, this situation is not the first time in the history of Bitcoin.
As of now, the price of Bitcoin is still hovering around $97,800, with no obvious upward or downward trend. The market is still waiting for the next signal.
In summary, Glassnode's analysis believes that although this Bitcoin crash has caused many investors to suffer heavy losses, history tells us that this time may be a good opportunity for the market to adjust.
💬 Do you agree with Glassnode's analysis? What do you think will happen to Bitcoin next? See you in the comments section!
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