The ongoing bearish sentiment in the cryptocurrency market is the worst ever, blockchain analytics firm Glassnode said in its latest report. The company said a combination of factors made June and the current year the worst year ever for bitcoin, the world’s largest cryptocurrency. Bitcoin has faced significant selling pressure due to macroeconomic factors, with the coin falling below the $20,000 mark several times in June. The price of bitcoin is down 55% so far this year.
The firm’s report, titled “A Bear of Historic Proportions,” highlights how key metrics such as the 200-day moving average (MA), negative deviation from actual price, and net realized losses all point to a historically bearish month for Bitcoin . Bitcoin has now fallen below half of its 200-day SMA.
“For the first time in history, both bitcoin and ethereum traded below their previous cycle’s ATH during this period,” the report reads.
Glassnode also noted that as Bitcoin’s spot price fell below its actual price, most traders had to close their positions at a loss, putting further downward pressure on the coin. “This cascading effect is often a ‘typical bear market and market capitulation,'” Glassnode said.
These conditions were exacerbated by the fall in bitcoin’s price, with investors booking historic losses on days when prices fell below $20,000. “Investors collectively locked in losses of -$4.234B in one day, a 22.5% increase from the previous record of $3.457B set in mid-2021,” the report added.
“Investors spent more than $7.325B in BTC losses by spending tokens accumulated at higher prices,” the company tweeted.
Largest realized loss in dollar terms for the last three days #bitcoin history.
Over $7.325B in USD Bitcoin Investors spend coins that accumulate at higher prices, locking in losses.
A thread exploring this in more detail? ? ? ?
– Glass Node (@glassnode) June 19, 2022
Rising inflation, rising interest rates, volatility in tech stocks, and the ongoing Russia-Ukraine conflict are all cited as macroeconomic conditions driving down the price of bitcoin and other cryptocurrencies, leading to the current market capitulation.