Bitcoin's Brutal Week: Average Daily Losses At $470M
Bitcoin lost more than 12% of its value in the last seven days as market sentiment turned significantly bearish.
What Happened: According to data from whalemap, the high-value losses being transacted on-chain corresponds directly to a higher level of market-wide panic.
Moving P&L is a great indicator of how much panic is happening on the market. High amounts of losses being transacted on-chain = more panic.
So far, we are averaging about $470 Million of losses everyday, whereas the previous macro bottom had days with upwards of $1.5B pic.twitter.com/MoDtxVmSbW
— whalemap (@whale_map) January 7, 2022
As of Jan 8, data showed that Bitcoin’s daily losses were at an average of $470 million – still considerably lower than the $1.5 billion in daily losses recorded at the previous macro bottom.
On Monday morning, Bitcoin was trading at $40,996 with a daily trading volume of $22 billion. The leading digital asset saw its market cap fall to $777 billion and its dominance stood at 40.50% of the crypto market.
The past week’s selloff resulted in large scale liquidations in crypto derivative markets, with traders in long positions taking the biggest hit.
According to glassnode, the week saw the highest number of longs liquidated since prices crashed in May 2021.
“This means that the majority of liquidations in futures markets over recent weeks were long traders attempting to catch the knife,” said glassnode.
#Bitcoin long liquidation dominance has hit 69%, the highest level since the May 2021 deleveraging event.
This means that the majority of liquidations in futures markets over recent weeks were long traders attempting to catch the knife.
Live Chart: https://t.co/FM03prCgrV pic.twitter.com/5I6uyEutx8
— glassnode (@glassnode) January 10, 2022
On-chain sentiment analytics tool Santiment also confirmed that the trading crowd believes that crypto is “officially in a bear market.”
Our social trends data confirms that the trading crowd feels very much as though #crypto is in an official #bearmarket. Mid-May was the last time #bearish sentiment was this prevalent, which is a very promising sign that weak hands are capitulating.https://t.co/Xyuw1L5fRB pic.twitter.com/Uz882URRla
— Santiment (@santimentfeed) January 10, 2022
See Also: Bitcoin Will Outpace Stocks In 2022 Amid Fed Rate Hikes: Report
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