Bitcoin’s Third-Largest Loss in 2024: Short-Term Holders’ Sell-Off Results in $537 Million Decline
Bitcoin faced a notable price drop on June 24, slipping below the $60,000 threshold and hitting a low point near $58,500. This downturn resulted in a substantial realized loss exceeding $500 million, as data from Glassnode indicated a specific loss of $537 million.
The sell-off, according to Glassnode data, was predominantly instigated by short-term holders (STHs) who had held Bitcoin for less than 155 days. These short-term holders were responsible for nearly the entire $537 million in realized losses. In contrast, long-term holders (LTHs), those holding Bitcoin for over 155 days, experienced minimal losses totaling only $543,000.
This event marked the third-largest realized loss in 2024, following significant sell-offs on March 19, when Bitcoin retracted to $62,000 from an all-time high, and on May 1, when the price dipped below $60,000, reaching as low as $56,500. A deeper examination revealed that out of the $537 million in losses, $441 million stemmed from holders who had owned Bitcoin for a month or less, as reported by Glassnode.
Glassnode’s data also highlighted that approximately $325 million of the losses were associated with whales, entities holding between 100 and 10,000 BTC. This underscores that even large-scale investors, or whales, are vulnerable to selling under market pressure, akin to retail investors.
The visual representation of Bitcoin’s realized loss by wallet size, as depicted in the Glassnode data, further illustrates the impact of the recent sell-off. The chart showcases the distribution of losses across different wallet sizes, emphasizing the significant financial implications of the price drop on various investor profiles.
In conclusion, the recent price drop in Bitcoin not only led to substantial realized losses, particularly among short-term holders, but also highlighted the susceptibility of whales to market pressures. This event serves as a reminder of the dynamic nature of the cryptocurrency market and the diverse impact it can have on investors of varying profiles.
