BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home BREAKING NEWS

Market Speculators Exit Bitcoin as Glassnode Reports Significant Capitulation

by Matoy
August 8, 2024
in BREAKING NEWS, CRYPTO
Reading Time: 2 mins read
A A
1
SHARES
19
VIEWS
Share on XShare in TelegramShare on Reddit
  • Bitcoin’s short-term holders face intense financial stress, with only 7% currently in profit.
  • Glassnode reports over $365 million in Bitcoin liquidations, signaling a purge of market speculators.
  • Long-term Bitcoin holders remain largely unaffected by recent price dips, showing resilience.

Recent market dynamics have led to a substantial purge of speculators from the Bitcoin ecosystem, as detailed in Glassnode’s latest “The Week Onchain” newsletter. This cleansing comes amid a significant downturn in Bitcoin prices, echoing the financial turmoil that followed the collapse of FTX. The crash saw Bitcoin plummet to $49,500, putting enormous pressure on short-term holders (STHs) – those who have held Bitcoin for 155 days or less. These newer entrants to the market experienced the sharpest unrealized losses since last year’s FTX crisis. Currently, a mere 7% of Bitcoin held by STHs is profitable, underscoring the severe stress these investors are enduring.

Glassnode’s analysis highlights that these recent buyers are undergoing significant financial strain, with their holdings suffering more than one standard deviation below the long-term average profitability. This indicator not only reflects current investor stress but also marks a critical financial juncture similar to last year’s price dip below $30,000.

Speculator Wipeout Evident Across Metrics

The data further reveals that STHs dominate the onchain losses, contributing to 97% of the total, while long-term holders (LTHs) appear relatively stable, with only 3% of losses attributed to them. Additionally, the Short-Term Holder Spent Output Profit Ratio (SOPR) has plummeted, indicating that new investors are locking in losses around 10% on average – a level of sell-off depth surpassed only 70 days in Bitcoin’s history.

Broader Market Implications and Recovery Signs

The report underscores an “exceptionally eventful month” for Bitcoin, which saw its largest drawdown from the all-time high of this cycle, catalyzing a notable capitulation among short-term holders. The substantial futures liquidations, amounting to over $365 million, have significantly reduced open interest by three standard deviations, effectively flushing out excessive market leverage.

As the market begins to stabilize, the focus shifts to on-chain and spot market data, which will be crucial for analysts assessing potential recovery in the upcoming weeks. This reset may provide a foundational base for future market stability and growth, paving the way for a more measured and possibly bullish outlook for long-term market participants.

TweetShareShare
Previous Post

Immutable Shuts Down Its NFT Marketplace and Here is Why

Next Post

Judge Approves $12.7 Billion Payout for FTX Creditors in Settlement with CFTC

DON'T MISS THESE! HOT OFF THE PRESS

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself
CRYPTO

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape
CARDANO

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish
BITCOIN

$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish

July 18, 2025
Load More

Related News

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin US Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.