Bitcoin investors sold the asset at a loss of $1,9 billion after FTX’s collapse

The highest losses were observed in June 2022

23.11.2022 - 16:00

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3 min

What’s new? Analytics firm Glassnode reported that bitcoin investors’ realized losses caused by the collapse of the FTX crypto exchange reached $1,9 billion on November 18. This is the fourth-largest figure in history. In the first place was the realized loss from the correction in June 2022, when the BTC exchange rate dipped below $20 000. The figure back then was $2,5 billion.

The total #Bitcoin market Realized Loss peaked at -$1.9B last Friday.This is the fourth largest daily realized loss in history, ranking behind:-$2.0B during LUNA collapse-$2.2B in June 2021 start of bear-$2.5B in June 2022 sub-$20kLive Chart: https://t.co/VIgD2Xgaiv pic.twitter.com/5gBsUgnfZm
— glassnode (@glassnode) November 23, 2022

What else did Glassnode report? The November figure is also inferior to the correction ahead of a bearish cycle in June 2021. At that time, the realized loss was $2,2 billion. In addition, investor losses reached $2 billion after the collapse of the Terra blockchain ecosystem in May 2022.

BTC situation. On November 10, the rate of the asset fell to a two-year low, hitting $15 780. On November 16, Glassnode recorded a surge in bitcoin accumulation by large wallets, with the number of addresses with balances of more than 10 000 BTC rising to 40 000. On the same day, a record ratio of short and long positions in BTC futures was recorded on CME. The net short was 430 contracts, one of the highest ever.

On November 20, the correlation between bitcoin and the S&P 500 stock index turned negative at -0,74. Previously, a similar situation was observed in December 2021. On the same day, BTC’s address activity hit its six-month high, with 1,1 million unique wallets joining the network.

On October 26, liquidations of short positions in BTC across all exchanges reached a year-high of $331.8 million.

As of November 23, 15:30 UTC, BTC is trading at $16 462, having gained 1,74% in 24 hours, according to Binance.

To learn how FTX’s collapse affected the duration of the bear market, see GetBlock Magazine’s article.

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