Bitcoin’s 2022 realized losses is almost double the size of realized profit

1 year ago

CryptoSlate’s investigation of Glassnode charts showed that Bitcoin’s (BTC) realized losses successful 2022 were astir doubly the size of realized profit.

Bitcoin realized losses apical $195 billion

According to the chart, Bitcoin had a realized nonaccomplishment of $195 cardinal successful 2022. This means that respective holders sold their BTCs for little than they bought them. Most of these losses occurred successful February, May, June, and November.

These periods are important arsenic assorted events ranging from the Russian-Ukraine warfare to the nonaccomplishment of crypto projects similar Terra’s UST, led to monolithic sell-offs resulting successful these losses.

The 2 highest capitulations successful 2022 happened during Terra’s implosion successful May and June. Investors mislaid implicit $14 cardinal and $20 billion, respectively.

Terra ecosystem’s illness birthed a contagion that resulted successful the eventual illness of crypto firms similar Celsius, Voyager DIgital, Three Arrows Capital, and respective others. Also, the planetary system faced record-high inflation, forcing the Fed to increase involvement rates significantly.

Bitcoin experienced its worst period during this period, arsenic it shed astir 40% of its worth wrong 30 days.

Meanwhile, the FTX illness successful November besides led to a grounds nonaccomplishment of implicit $10 cardinal successful 7 days for BTC holders -this was the third-largest capitulation successful the year. This lawsuit led to a monolithic withdrawal of the flagship integer plus from centralized exchanges arsenic investors began to favor self-custodial services.

CryptoSlate reported that investors suffered much realized losses from the FTX fallout than they did from the illness of Luna.

The 4th large capitulation happened successful February aft Russia invaded Ukraine. Sell-offs astatine the clip resulted successful implicit $9 cardinal successful losses. Reports emerged that Bitcoin traded astatine a premium arsenic precocious arsenic $20,000 connected Russian exchanges.

In summary, BTC investors’ capitulation successful 2022 resulted from macroeconomic and industry-specific factors that don’t precisely talk to the worth of Bitcoin.

Bitcoin realized nett is $105 billion

Meanwhile, investors inactive realized profits of $105 cardinal successful 2022, astir of which came from semipermanent holders holding BTC for implicit 18 months.

Notably, the realized profits decreased arsenic the twelvemonth progressed owed to declining prices. BTC’s realized gains peaked successful February and April erstwhile investors that sold made implicit $7 cardinal successful profits. Bitcoin traded astir $40,000 successful some months.

With the terms declining successful consequent months, profits for investors that were selling besides reduced. The lowest realized gains successful 2022 was $500 cardinal recorded successful December 2022, erstwhile BTC mostly traded beneath $17,000.