However, the current bitcoin cycle has been rather muted in terms of realized volatility and drawdowns compared to previous ones. The recent drop from nearly $100,000 to almost $90,000, just shy of a 10% correction, has kept investors on their toes.
Over the past two days, Glassnode data shows that short-term holders or those that have held bitcoin for less than 155 days, have sent $7.8 billion or 83,000 BTC to exchanges at a loss over the past two days.
In notional terms, this is the highest number on record. When this cohort tends to send $2 billion or more worth of tokens to exchanges, at a loss, it generally marks a local bottom.
With bitcoin changing hands at 7% away from its all-time high, investors that have bought in the past week are the only entity that would be sitting in a loss.
Glassnode data shows that approximately 678,000 bitcoin are sitting in a loss. This comes after record notional profit-taking as bitcoin approached $100,000.
