Bitcoin Capitulations Abound – Data Shows Realized and Unrealized Losses at Record Highs

Bankruptcies, shrinking profit margins, and traders making heavy losses are all signs of capitulation from various market participants .

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Three weeks away from FTX's collapse, Bitcoin (BTC) analysts are combing through the data to decipher whether more selling will continue or whether a bear market floor has been reached.

One thing that miners, short-term and long-term holders have in common is that they are currently losing in the Bitcoin market.

According to Glassnode's on-chain analysis, the magnitude of realized and unrealized losses among Bitcoin holders is one of the heaviest capitulation events in BTC's history. The capitulation is hampering all groups in the face of increasing bankruptcies and declining miner incomes.

Bitcoin's Realized Losses Are Fourth Largest Ever While Unrealized Losses Rise

November saw $10.8 billion in 7-day realized losses for Bitcoin. The biggest realized loss recorded in the history of Bitcoin is June 2022, when $19.8 billion was recorded. Such losses show that a large volume of Bitcoin changed hands at discounted prices.

Bitcoin made 7-day losses. Source: Glassnode

A popular saying in crypto investing is "you can't lose if you don't sell". Unrealized losses track the entire Bitcoin market relative to total market capitalization. The 56% unrealized loss of November 2022 is the largest in the current bear market. In 2014-2015, unrealized losses hit an all-time high for Bitcoin holders at 86%. The current unrealized losses are the fourth largest in Bitcoin history.

According to Glassnode analysts:

"This metric recently peaked at 56%, which is the highest for this cycle, and comparable to past lows in the bear market."

Bitcoin unrea...