Fourth-worst Bitcoin capitulation ever as BTC hodlers lose $10 billion in a week

Investors in bitcoin suffer losses in the billions of dollars

The latest issue of Glassnode’s weekly newsletter, “The Week On-Chain,” examined how the FTX fiasco affected BTC investors.
It is no secret that since FTX crashed, the USD has been trading five times higher than it did in late 2018 and 4.5 times higher than it did in March 2020.

The adjusted MVRV ratio is the difference between the market value of bitcoin and its realized value after deducting the profit from coins that have lain dormant for at least seven years.

Only 1.57% of trading days in the history of bitcoin have had a lower Adjusted MVRV value, the newsletter stated. “This metric is currently returning a value of 0.63 (average unrealized loss of 37%), which is very significant.”

Investing in dips as if it were December 2018

Hodlers have been aggressively acquiring BTC since despite the prior losses, and the trend is encompassing everyone from the smallest “shrimps” to the largest whales.

According to Glassnode, the recent strong accumulation score following the recent sell-off is similar to that of late 2018.

It also noted that similar investor responses were sparked by past black swan events that affected Bitcoin, including more recent ones like Terra’s LUNA’s collapse.

The Accumulation Trend Score’s seven-day moving average (MA) chart, which was included, displayed the current situation as purple, which is a sign of mass accumulation. Yellow, on the other hand, denotes widespread market distribution of BTC.

It reveals that the results have been conflicting, with a significant loss of confidence on the one hand leading to money being divested at a loss while on the other hand, “strong accumulation” has also taken place.

Life has been anything but simple for those who entered BTC under the current circumstances, though.

The dramatic realization of losses, as investors give up and capitulate in large numbers, is one consistent event that drives the transition from a bear market back towards a bull market, according to Glassnode.

The fourth-largest capitulation event on record occurred in November, with a realized loss of $10.16 billion over a seven-day period.

While BTC can be used to explain the dollar-value capitulation