Bitcoin holders sold at heavy losses in market freefall - report

According to TokenAnalyst, Bitcoin holders capitulated during the latest market collapse. But one person bucked the trend.

2 min read

Mar 26, 2020

During the recent Bitcoin market collapse, many traders unloaded their holdings at lower prices than they bought them. However, they might have saved money in doing so.

Blockchain intelligence firm TokenAnalyst studies blockchain data and watches Bitcoin being moved in and out of exchanges. The assumption is that when Bitcoin comes from an exchange, it has just been bought, and when money is sent to an exchange, it is about to be sold. TokenAnalyst simply compares the two prices to get a bird’s eye view on the market.

Traders sold their Bitcoin at a loss during market drop. Image: Shutterstock.

According to TokenAnalyst, traders sold for an average loss of 1.5-7.7% during the market collapse. Which, when stacked up to a 50% drop in the price of Bitcoin, doesn’t seem too bad.

"As the price drops, consumers are moving large volumes of $BTC quickly to trade or exchange for fiat in order to mitigate losses. We saw a dramatic increase of BTC flowing from consumers wallets to exchanges as price dropped," the report stated.

In particular, TokenAnalyst observed a notable rise in inflows to crypto exchange OKEx. The exchange witnessed 11 deposits totaling approximately 23,000 BTC. Per the data, the BTC held a median purchase price of $12,815 and a deposit price of $6,459. TokenAnalyst figured that if traders sold their holdings then, losses would have added up to $146 million.

But one trader wasn’t worried about making a loss.

An amount of 10 Bitcoin, that was bought for just $9.10 in 2012, was deposited to Binance on March 4, when the price of Bitcoin was $8,769. If it was sold, the trader would have bagged $88,000, making a 96,262% return on investment.

Not too bad for a Wednesday.

Get crypto news straight to your inbox--

sign up for the Decrypt Daily below. (It’s free).

Get Email!

United States of Bitcoin? These States Are Considering BTC Reserves

Donald Trump and his political allies are plugging away at plans to stockpile Bitcoin at a national level in the U.S. Treasury. And now, with the asset’s price repeatedly soaring to new peaks since Election Day, some U.S. states are following suit. So far, three states are fielding proposals to establish strategic Bitcoin reserves, while digital asset advocates are calling for other local governments to do the same. Bitcoin Strategic Reserve Is Now on the Table—Here's How It Could Work Here'...

AI Won’t Tell You How to Build a Bomb—Unless You Say It’s a 'b0mB'

Remember when we thought AI security was all about sophisticated cyber-defenses and complex neural architectures? Well, Anthropic's latest research shows how today’s advanced AI hacking techniques can be executed by a child in kindergarten. Anthropic—which likes to rattle AI doorknobs to find vulnerabilities to later be able to counter them—found a hole it calls a “Best-of-N (BoN)” jailbreak. It works by creating variations of forbidden queries that technically mean the same thing, but are expre...

Elon Musk and Dogecoin: How the Billionaire Became the 'Dogefather'

As Dogecoin makes a comeback off the back of Bitcoin’s surge, some may be pondering: Where did the asset come from? What’s it for? And what’s Tesla CEO Elon Musk got to do with it? The original meme coin’s boom largely has the world’s richest man to thank. Musk’s obsession with shitposting helped boost the coin to a top 10 cryptocurrency. It’s been a wacky ride over the past few years, culminating in Musk's appointment to co-lead a government agency called D.O.G.E.—yes, really. But we'll explai...

News

Courses

Deep Dives

Coins

Videos