The FTX collapse has become a source of financial stress for Bitcoin bulls and long-term investors, according to Glassnode analysts.
In the wake of the FTX fallout, confidence of both #Bitcoin Whales, and Long-Term holders appears shaken
With over 84k $BTC distributed by LTHs, and ~5k $BTC in net whale exchange deposits, #Bitcoin markets are on shaky ground.
Read our latest analysis👇https://t.co/K84hMlG2mX
— glassnode (@glassnode) November 21, 2022
Net outflows of Bitcoin from exchanges to non-custodial wallets continued, reaching a record 172,700 BTC per month. The driver of the trend remained the loss of investor trust in centralized platforms .
Analysts stressed that across the total number of confirmed daily transactions, 29.2% (77.1 thousand out of 246 thousand on average) were related to withdrawals.
Specialists identified an increase in the average size of deposits on crypto exchanges, which is a sign of activity by whales (balances over 1000 BTC), institutions and market makers. The situation is typical for key platforms such as Binance, Bitfinex, Coinbase, Gemini and Kraken.
Earlier a similar trend emerged at the late stages of the bear market of 2018-2019. Subsequently, similar observations were seen after the Terra collapse.
Analysts linked the growth of deposits on crypto exchanges to “unloading” whales. Since the launch of Binance in July 2017, this category of market participants moved coins to cold wallets on average 17,825.
With the price now below $16,000 for the first time since March 2020, whales began to incur “paper” losses. Consequently, over the past week they have been depositing Bitcoin on centralized platforms at a pace of 5,000 BTC to 7,000 BTC per day.
«Financial pain» began to show up in a broader context, specialists noted. On the previous week the net amount of realized losses ($1.45 billion) was the fourth-largest ever by magnitude.
Realized profit of $83 million in this period suggests that the majority of spent coins came from investors within the current cycle.
Last week analysts drew attention to the rising hodler spending. This time they noted that since the FTX collapse, holders of coins aged more than six months have reduced their balances by 254,000 BTC, equivalent to 1.3% of the available supply.
Over the past 30 days, expenditures have become the highest since January 2021 (240,000 BTC), when hodlers booked profits in the bull market.
As of November 17, the unrealized loss of the “average” long-term Bitcoin investor reached 33%. This figure, according to the indicator MVRV, corresponds to the bear market of 2018 before its conclusion.
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