Last week, the volume of bitcoins sold at a loss by short-term investors reached $ 3.83 billion.
#Bitcoin has held onto support this week, absorbing yet another capitulation, and likely sell-side pressure from miners
We analyse
— A second on-chain capitulation
— Balance of miner revenue + selling
— Institutional demandRead more in The Week On-chainhttps://t.co/fK3SA55jjv
— glassnode (@glassnode) June 28, 2021
The cumulative figure broke the previous record of $ 2.65 billion.
The metric is valued at the cost of unspent transaction outputs (UTXO). According to analysts, 2.44% of the market supply at the disposal of long-term investors is unprofitable.
Dynamics of net realized profit / loss by bitcoin holders. Data: Glassnode.
The fall in price below $ 30,000 caused panic selling among both short-term and long-term bitcoin holders. The losses of the former averaged 13.4% (in March 2020, they reached 15.4%). Holders got rid of coins that they had previously purchased in the range of $ 9,200 to $ 16,300.
Dynamics of the LTH-SOPR and STH-SOPR indicators. Data: Glassnode.
Experts have found stabilization of the dynamics of the balances of bitcoin wallets of miners after the sale of 7000 BTC in early June. Such actions may have been required to cover the cost of moving the ASIC equipment.
According to analysts’ estimates, from January 27 to June 27, the number of coins on these addresses increased by a total of 10,000 BTC, or 7.6% of all coins mined during the mentioned period. Miners sold 92.4% of this number.
Dynamics of the aggregate balances of bitcoin miners. Data: Glassnode.
The 14-day moving average of BTC transfers from miners’ bitcoin wallets to exchange addresses has been steadily decreasing from March 580 BTC per day to the current 180-200 BTC.
Over the past two weeks, the balances tracked by the service OTC-platforms decreased by 1,134 BTC. This also confirms the easing of selling pressure by miners.
Dynamics of transfers from miners’ wallets to bitcoin exchanges. Data: Glassnode.
Grayscale Investments (GBTC) Bitcoin Trust price discount to ARE NOT decreased to 4.83% -14.44%. In May, it reached a record 21.23%. Investors through this product purchased a total of 651,500 BTC or 3.475% of the market supply of the first cryptocurrency.
Dynamics of GBTC discount / premium to NAV. Data: Glassnode.
Comparing the dynamics of this indicator with the net flows of exchange-traded funds launched in Canada based on the first cryptocurrency Purpose Bitcoin ETF and 3iQ Digital Asset Management QBTC ETF, as well as the balance of the Bitcoin exchange Coinbase Pro, analysts noted low demand from institutional investors.
Earlier, Glassnode analysts recorded a decrease in activity in bitcoin networks to annual lows.
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