Bitcoin 2021 bull market buyers ‘capitulate’ as data shows 50% losses

Research reveals that Bitcoin’s spot trading at below $20,000 for Bitcoin (BTC), is experiencing a new “capitulation”, which encompasses an entire year of buyers.

On Sept. 29, CryptoQuant, a chain analytics platform, highlighted intense selling by a large group of hodlers in one of its Quicktake Market updates.

2021 bullion coins have been “sold aggressively”

BTC/USD is hovering at levels not seen since 2020, so it’s not just miners who are feeling the pinch.

CryptoQuant contributor Edris revealed that people who bought bitcoins between April 2021 & April 2022 were selling more coins than they bought.

He concluded that “it is obvious that coins between 6-18 month ago have been sold aggressively recent”

These coins were purchased between April 2021 & April 2022 at prices exceeding $30K. This indicates that many of the holders who entered the market during the 2021 bull markets and were above $30K have now given up and have exited the market with an approximate 50% loss.

Chart showing the Bitcoin exchange inflow Spent OAB Age Bands chart (screenshot). Source: CryptoQuant

These events shouldn’t be overlooked as they often occur at the bottoms of bear markets. It is not clear if the June macro bottom at $17,600 will become this floor.

Edris was added:

These types of capitulations are more common in bear markets, which suggests a possible bottom formation in the near-future.

Profit potential outweighs profit warning

While we are investigating Bitcoin’s Spent Opinion Profit Ratio (SOPR), a fellow CryptoQuant contributor Caue Oliira pointed out another historical bear market trend that is repeating itself.

Related: Bitcoin price to take a big dump after passing $20K warns trader

SOPR is the sum of the price paid for a certain amount of BTC and the price at which it is sold. This figure fluctuates around 1. Values below indicate a bear market, as investors reluctantly take on net losses.

Glassnode’s data shows that the entity-adjusted SOPR was less than 0.95 as of September 29, according to its on-chain analytics partner Glassnode.

This metric is trending towards 1 after it reached a local bottom last June. It suggests that the prime buying opportunity may already have hit.

Oliveira stated, “Looking at long-term holders’ on-chain spending patterns measured by the Spent Output profit Ratio…we can find the largest selling points at a loss.”

These points were historically the most risk-adjusted entry in the bear market floors.

He said that a “maximum Pressure Point” for long-term holders is in the future, referring to selling pressure declining as SOPR inches higher.

Bitcoin entity-adjusted Spent Output Profit Ratio (SOPR) chart. Source: Glassnodecom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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