Bitcoin Crash Unlike LUNA & FTX Collapses, Says Glassnode: Here’s Why

On-chain analytics firm Glassnode has explained how the latest Bitcoin selloff is different from the LUNA and FTX crashes of ￰0￱ Supply In Profit Trend Is Structurally Different For The Latest Crash In a new post on X, Glassnode has discussed how the recent bearish action in BTC compares against some of the past ￰1￱ analytics firm has used the Percent Supply in Profit to make the ￰2￱ on-chain indicator measures, as its name suggests, the percentage of the total Bitcoin circulating supply that’s sitting on some net unrealized gain right ￰3￱ Reading: BNB Shoots Up 6%: Is This Just The Start Of A Run To $2,400? The metric works by going through the transaction history of each token in circulation to see what price it was last transferred or sold ￰4￱ this previous transaction price was less than the latest spot price for any token, then it may be considered to be currently sitting on some ￰5￱ Percent Supply in Profit adds up all coins of this type and determines what percentage of the supply they make ￰6￱ indicator called the Percent Supply in Loss tracks the tokens of the opposite ￰7￱ one of these indicators is known, the other can simply be calculated by subtracting it from 100, since the total BTC supply must add up to 100%.

Now, here is the chart shared by Glassnode that shows the trend in the Bitcoin Percent Supply in Profit over the last few years: As is visible in the above graph, the Bitcoin Percent Supply in Profit hit the 100% mark earlier in the month when the cryptocurrency’s price set its new all-time high (ATH). When the sharp selloff at the end of last week started, the indicator’s value was still well over the 90% mark, meaning the vast majority of investors were in the ￰8￱ such, the crash was more profit-driven, with losses mostly coming from the top ￰9￱ some of the big crashes of the 2022 bear market, however, the market conditions were quite ￰10￱ the LUNA and FTX collapses, the Percent Supply in Profit sat under 65%.

In the chart, Glassnode has also highlighted the data of another metric: the Net Realized Profit/Loss, measuring whether profit-taking or loss-taking is dominant on the BTC ￰11￱ this indicator, it’s apparent that the aforementioned crashes saw deep negative values, implying a broad capitulation event took ￰12￱ Reading: Bitcoin Direction Still Unclear: Analyst Says Watch These Key Charts The 3AC collapse occurred alongside a higher Percent Supply in Profit, but it also witnessed a notable spike in ￰13￱ on this, Glassnode concludes that the latest Bitcoin crash was “a structurally different, leverage-driven event.” BTC Price At the time of writing, Bitcoin is trading around $110,400, down more than 11% over the last ￰14￱ image from Dall-E, Glassnode.

com, chart from ￰15￱