Bitcoin hodlers lost over $7 billion to the market crash between June 16 to June 18 as investors scrambled to sell coins they bought for higher prices, according to a Glassnode report.
The on-chain data aggregator said this was the most considerable USD-denominated realized loss in Bitcoin history. In three days, investors sold 555,000 BTC when it was trading between the $23,000 to $18,000 range.
The last three consecutive days have been the largest USD denominated Realized Loss in #Bitcoin history.
Over $7.325B in $BTC losses have been locked in by investors spending coins that were accumulated at higher prices.
A thread exploring this in more detail 🧵
1/9 pic.twitter.com/O7DjSK2rEQ— glassnode (@glassnode) June 19, 2022
Long-term holders sold at a loss
According to the report, long-term investors were part of those who sold their holdings. This class of investors liquidated around 178,000 BTC for prices below $23,000.
It continued that some long-term holders who had bought the Bitcoin top at $69,000 also sold the coin when it capitulated to $18k, leaving them with a 75% loss on their investments.
Meanwhile, Bitcoin miners were also not exempted from the selling pressure as they sold 9,000 BTC from their treasuries. The declining revenue presents a problem as production costs increase. In addition, the mining hash rate has fallen by 10% from its all-time high, suggesting that some miners are no longer operating at full capacity.
Glassnode concluded that the supply in profit has dropped by 49%, and addresses in profit are only 10% higher than the lowest level during the 2018-2019 bear market and the Covid-19 crash.
Ethereum DeFi market is deleveraging
Another Glassnode report has revealed that the Ethereum DeFi market is experiencing a significant deleveraging that has resulted in a 60% drop in the total value of assets locked on the network in the last six weeks. In monetary terms, this represents a $124 billion decline in TVL.
On a 7-day basis, there has been significant TVL contraction, including the recent sell-off that led to a 27% decline in TVL. In the past 18 months, only the LUNA crash and the sell-off in May 2021 have led to a more considerable TVL contraction.
According to data from DeFiLlama, Ethereum assets TVL stands at $47 billion.
Stablecoins under spotlight
The report also highlighted that stablecoins face massive redemptions since TerraUST’s capitulation.
Since May 1,
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