The Fourth Largest Bitcoin (BTC) Sell-Off in History Occurs in November 2022

Hodlers of Bitcoin (BTC) has given up more this month than at practically any other time in the currency’s existence. The fourth-largest sell-off in BTC history occurred in November 2022, according to data from on-chain analytics company Glassnode.

After a few wild weeks, the BTC market has been settling down, with prices trading in a small range and maintaining slightly above $16k. The overall reaction of Bitcoin owners is gradually becoming more apparent as the chaos surrounding the demise of FTX calms.

This week’s publication by the firm examines the magnitude of both realized and unrealized losses suffered by Bitcoin owners in the wake of one of the biggest capitulation episodes in history. The altering behavioral tendencies that have transpired after the FTX catastrophe will also be examined.

According to the firm’s statement:

The price of BTC has been trading below the Realized Price ( the cost-basis of the wider market) for over 4.5 months. This has historically correlated with the bottom discovery phase, which can often be visualized and assessed using the Accumulation Trend Score metric.

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

Bitcoin Lost $10 Billion In Only Seven Days

Life has been anything but simple for those that entered BTC under the present circumstances, though. A recurring occurrence that spurs the shift from a bear market back to a bull market is the severe realization of losses, which causes investors to give up and succumb in large numbers, according to Glassnode.

With a 7-day realized loss of $10.16B, November saw the fourth biggest capitulation event in history. This is 2.2 times bigger than March 2020 and 4.0 times bigger than the high in December 2018.

It is no secret that cold feet have pervaded the crypto markets after FTX crumbled, despite the fact that the dollar-value capitulation can be explained by BTC trading five times higher than in late 2018 and 4.5 times higher than in March 2020.

In what it terms peak under-performance, Glassnode cited the adjusted market-value-to-realized-value (MVRV) ratio for Bitcoin, which demonstrates that coins moving on-chain are at loss-making levels that have never been seen before.

Moreover, the firm said:

Among all cohorts, the entities holding < 1 BTC have recorded two distinctive ATH waves of balance increase over the last 5-months. Shrimps have added +96.2k BTC to their holdings since the collapse of FTX and now hold over 1.21M BTC, equivalent to a non-trivial 6.3% of the circulating supply.