During this week, the largest cryptocurrency, bitcoin, has been felled by more than 47% from its weekly highest peak of $59463. The bitcoin market has gone through tremendous ups and downs, and now the process of its have felled by more than 50%, which is such a significant loss in its value. You will be shocked to know that this massive loss in the bitcoin value has not been seen in years. This crypto crash has emerged as a nightmare for the people who are trading bitcoin and who had invested their precious money in bitcoins.
Bitcoin Crash in Brief
- You will be shocked to know that the scale of the losses that have been incurred in the recent downfall in the bitcoin value has eclipsed all its previous events of capitulations which includes the loss of march 2020, November 2018. According to the reports from the glass node, this loss is a net loss, and it’s the all-time high loss of value $4.53 billion which was booked on the 19th of May and a total of $14.2 billion for the entire week. More and more people are now using profit maximizer platform for trading bitcoins.
- The cryptocurrency market has experienced such a massive loss that people are in a dilemma that they should sell their bitcoin or hold them. But if we see the entire situation and the statement made by the cryptanalyst, this is the right time for buying the bitcoin and maintaining it. They are urging people to not sell their bitcoin at this moment because of emotions. The selloff was so big that it had raised a lot of questions regarding the nature of bitcoins. People still think that the bitcoin market will remain in play this year like it was in the beginning or not.
- If we look at the numbers of the various entities on the chain who are in the profit now, then it has been noticed that the current situation is of fear, uncertainty, and doubts, which have reduced the good things up to 76% that is really very tremendous. It signifies that the remaining 24% of the on-chain entities are holding the UTXOs, which are underwater.
- You will be stunned to hear that the metrics have been highlighting the proportion of the market in which the people who are purchasing the bitcoin more and the people who are becoming the panic sellers according to the chain data and the intelligence platform. They mentioned all these things in a note. The note was also highlighting the large section of recent activities of selling which has been motivated by the short-term cryptocurrency holders. The people who still owe the coins have purchased this bitcoin in the last six months.
- In addition to it, during the sale of this capitulation, the selling of the bitcoins, which are one to three years old, was significantly less, and they are declining as the amount of the entire activity. This means that the people who are holding the bitcoin for a long time ago are not panic selling the bitcoin, and now they are rushing to the exits, according to that note.
- If we talk about the unbooked profits, then the glass node has initiated that almost 9 to 9.5 percent of the present marketplace capitalization existed as the inherent losses. This loss is equal to the value of $65 billion in the underwater value. This is just a historical event of capitulation, and if we see the market size, then the value of the underwater location of the on-chain very small. This can be compared to the unrealized losses which occurred in the month of March 2020 that was 44%, and it was over 114% in the month of November 2018.
- The currency crypto crash has led to the loss of 14.2 billion dollars, and it is such a massive loss that it has left investors in shock. But one thing that you should not lose here is hope because this is the only thing that is going to help you. If you have invested in bitcoin, then you should not panic sell-off them as the time is coming, and the bitcoin will come back to its initial value. You just need to hold on to your bitcoin, and this time shall pass.