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Long-term holders capitulating to the tune of 100k Bitcoin after SVB collapse could mark a stronger market rebound
Long-term holders have sold roughly 100K Bitcoin since the SVB collapse, a similar amount to the FTX collapse
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
- Bitcoin is hovering around $28,500 and has proven significant resistance in the past few weeks.
- However, we can analyze that capitulation with long-term holders occurred meaningfully in the past few weeks.
- CryptoSlate analyzed how long-term holders defined the end of bear markets in the past.
- We define long-term holders as an investor who has held Bitcoin for longer than six months, and during the SVB collapse, they capitulated to similar levels to the FTX collapse.
The times LTHs have capitulated in the past five years are highlighted in red. However, LTHs do also sell in the lead-up to bull runs.
- November 2018: Capitulation before the market bottom
- January 2020: Capitulation before the covid bottom
- June 2022: Luna collapse
- November 2022: FTX collapse
- March 2023: SVB collapse
- In mid-march, roughly 10,000 BTC were distributed at a loss by LTHs, similar to the FTX collapse. While the overall supply of LTHs decreased by 100,000 BTC.
- As history suggests, these capitulation events are needed for the next leg up.
Market Cap $1.59T
24H Volume $33.48B
