The Worst Bear Market for Bitcoin in History Occurred in 2022, According to Glassnode
- According to Glassnode, many Bitcoin (BTC) traders remain underwater and continue to sell at a loss, which has contributed to making the current crypto bear market the worst ever observed.
- Since the beginning of Bitcoin in 2009, only five times have spot prices traded below realized values, according to Glassnode, who noted that this is the third time this has happened in the past six years.
Investors locking in their losses on the biggest cryptocurrency by market cap has a negative impact on these conditions. In June 2022, when Bitcoin plummeted under $20,000, Glassnode said that BTC investors had locked in “the greatest daily USD denominated realized loss in history.” The bear market that began last year has shown no signs of abating, and many experts believe that it may be the worst on record. While there have been some bright spots in the crypto market, overall it has been a very tough year for investors.
The data from Glassnode shows that the current bear market is indeed the worst on record when compared to previous cycles. This is a worrying trend, as it indicates that investors are becoming increasingly pessimistic about the future of Bitcoin. While it is still early days, it seems likely that this bear market will continue to cause pain for investors for some time to come.
One silver lining of this dark cloud is that, despite the current conditions, there are still many people who believe in Bitcoin and its potential. Even during these tough times, there are those who remain optimistic about the future of cryptocurrency. As long as there are believers, there is a chance that Bitcoin will eventually recover and reach new heights.
No one can predict the future with certainty, but it seems clear that the current bear market has taken its toll on investors. It remains to be seen how much longer this cycle will last, but one thing is certain: Bitcoin has already made history by being the longest-lasting bear market.
The average Joe doesn’t have the stomach for these kinds of losses and will likely give up and move on with their lives. Interestingly, this is precisely what most Bitcoin (BTC) traders have done over the past few months. According to data from Glassnode, BTC holders continue to sell at a loss despite the current bear market being the worst recorded in history.
Whales are Still Accumulating Bitcoin
What’s even more interesting is that some of the biggest BTC whales have been accumulating during this period. This shows that they believe that BTC is still undervalued despite the current market conditions. So, while most retail investors are selling at a loss, the big players are buying up as much as they can.
It remains to be seen how long this bear market will last but one thing is certain, it’s going to take a lot longer for regular people to come back into the fold after getting burned so badly.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
