Cryptocurrency News

Bitcoin surged after a week-long ‘capitulation event’, resulting in a loss of $ 14.2B

According to an on-chain, cryptocurrency traders were greeted by green markets on May 24, as most altcoins saw their prices soar after last week’s decline, which was “the biggest drop since March 2020 sales” Was an incident of ” Report good From Glasnode.

After suffering Biggest monthly price drop In bitcoin (B T c) In history, bulls now want to return with a large amount of support near the $ 37,000 level, and within the last hour, the price of bitcoin returned to the $ 40,000 level.

Bitcoin price pullback. Source: GlassNode

The dedication experienced last week was “one for the history books”, with Glasnod’s data showing that the horrors of the actual loss on the chain “eclipsed all previous surrender events” $ 4.53 in losses recorded in May With a new high of billion. 19 for the full week and $ 14.2 billion were recorded.

Bitcoin realized the loss. Source: GlassNode

The $ 2.56 billion net on-chain loss seen on May 19 was 185% higher than the March 2020 COVID-19 sell-off, with the data indicating:

“A large cross section of the market was surprised by this incident.”

Not all traders were cautious of the move, however, as BTC holders with 1 to 3-year coins managed to spend their coins earlier in the cycle, “to capture ETH’s value out-performance at the time.” There was a possibility of winding up capital. ”These entities stopped selling during the surrender, while new hands were seen as panic-selling as they rushed to exit.

Overall, almost 9% to 9.5% of current market capitalization as a result of last week’s “historic surrender event” was recorded as unrealized losses, which is actually significantly smaller than the previous losses seen in March 2020 and November 2018 is.

Relative Unrealized Loss for Bitcoin. Source: GlassNode

Short-term holders have suffered the brunt of the market downturn and “currently have a net unrealized loss of -33.8% market cap on their coins.”

Hard hit altcoins bounce back

The May 24 price change was a welcome sight for the altcoin market, which was particularly difficult during last week’s sell-off.

Polygon’s MATIC has been one of the biggest beneficiaries of the day, continuing to receive additional attention from the cryptocurrency community, with it emerging as the preferred layer-two solution for the Ethereum network.

Additional focus a. Led to 100% increase in price of MATIC May 24 hit an intraday high of $ 1.67 from a low of $ 0.837 on May 23, while Maker’s MKR Similarly the price of the token was also seen at over 100% at a high of $ 4,174.

Daily cryptocurrency market performance. Source: Coin360

The market change of May 24 also increased the price of ether by 30% (ETH) Back to the support level of $ 2,500, while Binance Coin (Bnb) Managed to achieve a gain of 39% and is now trading near $ 320.

The total cryptocurrency market cap is now $ 1.68 trillion, and the dominance rate of bitcoin is 44.2%.

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