There are a number of factors that make today’s bear market the worst ever. This is because most Bitcoin (BTC) traders are losing money and continue to sell losses, according to Glassnode.
Blockchain analytics firm Glassnode has released a report titled “A Bear of Historic Proportions.”summarizethat Bitcoin price fell below the 200-day moving average (MA)
Glassnode also shows that a fall below 0.5 Mayer Multiple (MM) is an extremely rare opportunity. That hasn’t happened since 2015, with the report stating that “only 84 out of 4160 business days (2%) recorded MM closing below 0.5:”
“For the first time in history in 2021-22, MM lower (0.487) is below the previous low (0.511).”
Confirming the severity of the current market conditions is a drop in spot prices below realized prices, forcing traders to sell more of their coins at a loss. “An example of a bear market and a market capitulation”
Glassnode said it was unusual for the spot price to trade below the realized price. Noting that this is only the third time this has happened in the past six years. And it’s the fifth time since Bitcoin was launched in 2009.
the rarity of this event As demonstrated by Glassnode’s model, only 13.9% of all Bitcoin trading days saw spot prices fall below realized prices.
These conditions are exacerbated by investors locking in the largest crypto losses by market capitalization when the price Bitcoin Drops Below $20,000In June 2022, “bundle investors sold their holdings to lock in a $4.234 billion loss in a single day. This is a 22.5 percent increase from the previous record of $3.457 billion in mid-2021.”
lassnode estimates that the market is in the midst of a capitulation event. by pointing out that the miners canstart sellingholding, which is another indicator that surrender has occurred. Such events often indicate the lowest price range of the cycle.
BTC is currently down 70 percent from its November 2021 high, trading at $21,207. according to the informationof CoinGecko
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