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Bitcoin Crash Unlike LUNA & FTX Collapses, Says Glassnode: Here’s Why
Glassnode analyzed the recent Bitcoin selloff using the Percent Supply in Profit metric, which tracks the percentage of Bitcoin in circulation currently holding unrealized gains. This indicator reached 100% earlier this month when Bitcoin hit its all-time high, indicating widespread profitability. Even during the recent crash, the Percent Supply in Profit remained above 90%, suggesting that the selloff was primarily driven by profit-taking. This contrasts with the LUNA and FTX crashes of 2022, where the same metric was below 65%, indicating more significant losses. The Net Realized Profit/Loss indicator also shows deep negative values during the 2022 crashes, implying broad capitulation. While the 3AC collapse had a higher Percent Supply in Profit, it also experienced a spike in loss-taking. Glassnode concludes that the latest Bitcoin crash was structurally different, primarily driven by leverage rather than widespread losses. Bitcoin's price is currently around $110,400, reflecting an 11% drop over the past week. The analysis suggests that recent market behavior differs significantly from the capitulation events witnessed during the bear market of 2022.
