Bitcoin Market Realized On-chain Losses for First Time in Over Two Weeks – What This Means for BTC Price

cryptonews.com:

The ratio between all Bitcoins moved at a profit and loss fell below 1 for the first time in more than two weeks on Thursday the 9th of February, according to data from crypto analytics firm Glassnode. The so-called Bitcoin Realized Profit/Loss Ratio fell to 0.9189 as Bitcoin’s price slumped to a new near-three-week low under $22,000 amid concerns about 1) a US regulatory crackdown that is for now focused on US-based crypto staking service providers, but could soon spread to other parts of the industry and 2) concerns that the Fed might end up raising interest rates more than expected this year.

That means that, on Thursday, the Bitcoin market realized a greater proportion of USD-denominated losses than profits. Prior to Thursday’s 5% one-day drop, Bitcoin had already pulled back 5% from its earlier monthly highs in the $24,000s, but the Realized Profit/Loss ratio had remained positive. That indicated that downside was likely a result of profit-taking from those who had bought earlier in the year, prior to/during Bitcoin’s big run-up.

However, the Realized Profit/Loss ratio turning negative on Thursday suggests that a greater proportion of the sell pressure was likely a result of traders who had gone long within the last few weeks being stopped out. Future position liquidation data from crypto derivatives analytics firm coinglass paints a similar picture. Bitcoin long position liquidations spiked to their highest in over three months at $64.6 million on Thursday.

As the week draws to a close, the Bitcoin price is now consolidating just above the key $21,500 resistance-turned-support area and traders are wondering whether all of the short-term “weak hand” investors have been wiped out. Anyone who placed their stop in the