The largest losses suffered by long-term Bitcoin investors since March 2020’s capitulation and 2018-2019 bear markets are still to be recouped. But they may need to wait for relief.
Calculated by measuring the coins that were deposited to exchanges, the aggregate realized losses of long-term holders of Bitcoin (BTC), exceeded 0.006% of market capitalization as of May 29, according to Glassnode’s The Week Onchain report.
Since March 2020, long-term holders have suffered their worst losses.
If the previous bear market loss patterns are repeated, however, dramatic losses could continue for some time. LTH losses surpassed 0.015% of market cap between 2018 and 2019, which was a record that lasted for almost a year. The current loss to long-termers has been only observed for around a month.
Glassnode states that LTH losses are now similar to those in previous bear markets but that they must continue for longer periods of time before they can be truly comparable. According to the report:
“The LTH losses for coins that have been deposited to exchanges now exceed those of previous bear markets.” We do not yet have the duration component.
LTH is defined by Glassnode as a holder who has not moved their coins in the last 155 days. Anyone who bought Bitcoin before December 2019 will be able to keep their investment up for the time being.
Notable is the fact that prices bounced back from their lowest point in 2019 and 2020. Cointelegraph reported Tuesday that there will be a capitulation before any price recovery is possible.
Despite the grim price outlook, inflows into digital asset investment products like Bitcoin exchange-traded fund (ETF), topped $100,000,000 last week. The June 6 CoinShares report shows that the majority of inflows came from the Americas. This suggests that European investors remain bearish at this time.
Related: Institutional investors buy Bitcoin amid crypto bear market: CoinShares
CoinShares also highlighted the differences in exchange flows between BTC (ETH) and Ethereum (BTC). BTC has seen exchange inflows totaling approximately $506 million through 2022, while ETH has seen net outflows of $357 millions. This indicates that market sentiment for ETH at the moment is lower than for BTC.
According to CoinGecko data, Bitcoin prices have fallen 5.3% in the last 24 hours and are currently trading at $29 567. Ethereum has fallen 6.7% in the same time period and is trading at $1.756 after having lost 34% in the last month.