On-chain data shows that large Bitcoin holders have engaged in a notable amount of loss making recently, a sign of capitulation.
Bitcoin sharks and whales see high values on the realized loss scale
In new mail On the “Realized loss“Here refers to an indicator that, as its name suggests, measures the total amount of loss made by BTC holders through their transactions.
In the context of the current topic, the relevant version of the measure is one that tracks transfers relating to two specific groups of investors: Sharks and whales. These blocks cover ranges of 100 to 1,000 BTC and 1,000 to 10,000 BTC respectively. As such, the only investors eligible for sharks and whales are those with deep pockets.
Recently, the market as a whole has seen some pain as bearish momentum has taken over the sector, leading to loss-making selling among investors. Sharks and whales were not that different in behavior, as the realized loss graph shows.
As shown in the chart above, Bitcoin sharks and whales have noticed that the 7-day simple moving average (SMA) of their combined realized losses is at significant levels recently.
From the chart, it seems clear that loss realization rose to particularly high levels after the price collapse in November and February, indicating a clear degree of market pain surrounding the events.
Today, the 7-day simple moving average of Bitcoin realized losses to sharks and whales is more than $200 million per day. “Typical surrender behavior from larger entities,” the analytics firm noted.
Historically, major capitulation phases have tended to pave the way for bottoms as coins tend to move from weak hands to firmer entities during such events. It now remains to be seen whether the losses suffered by deep-pocketed investors have been significant enough to reach the bottom yet.
In some other news, Bitcoin is almost halfway to the next point Halfas Glassnode highlighted in another X-file mail. Halvings are events that permanently halve the BTC block support, which is the compensation miners receive for adding the next block to the chain.
Halvings occur approximately every four years, and the next one is currently expected to occur in April 2028. Bitcoin will reach the halfway point to this event at block 945,000. Currently, the chain is at block 943,495.
Bitcoin price
Bitcoin has continued to consolidate recently with its price trading around $67,000.
