Bitcoin suffers fifth largest realized loss since FTX collapse amid Mt. Gox panic

Quick Take

Bitcoin’s recent price dip to around $54,000 has triggered one of the largest realized losses since the FTX collapse, specifically the fifth biggest realized loss since. This significant sell-off is primarily attributed to panic selling spurred by news related to Mt. Gox.

On July 5, within a one-hour resolution, Bitcoin’s aggregated realized loss soared to $814 million. $587 million of these losses were incurred by short-term holders who had held Bitcoin for one to three months. This demographic’s reaction to market turbulence highlights the vulnerability of short-term holders compared to their long-term counterparts.

The sell-off highlights a pattern observed on July 4, where short-term holders were found to be holding 2.5 million BTC at a loss. This indicates that these holders pose a greater risk to a Bitcoin correction than the impact of Mt. Gox.

Despite the turmoil, long-term holders exhibited resilience, contributing minimally to the selling pressure. This stability from seasoned investors indicates confidence in Bitcoin’s long-term prospects, contrasting sharply with the short-term market fluctuations driven by newer entrants reacting to immediate news events.

Source: Glassnode

The post Bitcoin suffers fifth largest realized loss since FTX collapse amid Mt. Gox panic appeared first on CryptoSlate.