Bitcoin Starts The Week With 3% Loss As Market Correction Events Trigger Realized Losses
The new trading week commenced with Bitcoin, the leading cryptocurrency, experiencing a 3% decline in its value. This downturn comes amid a broader trend of market correction events impacting the cryptocurrency landscape.
Glassnode data has provided insights into the realized losses among Bitcoin short-term holder constituent cohorts, spanning various timeframes from 1 day to 6 months.
Notably, there has been a significant spike in losses around these market correction events, indicating the capitulation of recent investors who bought at the local top and subsequently sold at the bottom.
Assessing the Realized Losses across the #Bitcoin Short-Term Holder constituent cohorts [1d-1w, 1w-1m, 1m-3m and 3m-6m], we note a large spike in losses around market correction events.
This highlights the capitulation of recent investors who have bought the local top, and… pic.twitter.com/CT97gcgXGc
— glassnode (@glassnode) April 29, 2024
CoinShares, a prominent digital asset investment firm, reported that digital asset investment products witnessed outflows for the third consecutive week.
The total outflow amounted to $435 million, with ETP trading volume falling to $11.8 billion during the same period. Bitcoin and Ethereum were particularly affected, with outflows of $423 million and $38 million, respectively.
According to CoinShares, digital asset investment products saw outflows for the third consecutive week last week, with a total outflow of $435 million, and ETP trading volume fell to $11.8 billion last week. Bitcoin and Ethereum saw outflows of $423 million and $38 million…
— Wu Blockchain (@WuBlockchain) April 29, 2024
These developments underscore the challenges faced by cryptocurrency investors amid ongoing market volatility. As Bitcoin and other digital assets navigate through price fluctuations, investors are advised to exercise caution and carefully assess market conditions before making investment decisions.
The prevalence of market correction events highlights the importance of risk management strategies and maintaining a long-term perspective in navigating the cryptocurrency market landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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