The analysis firm Glassnode revealed in its weekly report the effective losses suffered by the most popular cryptocurrency in the week of May 17 to 23.
“A capitulation for the history books.” This is how the analytical firm Glassnode reflected in its weekly report the effective losses suffered by Bitcoin in the week of May 17 to 23 and that exceeded US $14,000 million.
The peak took place on May 19, with $4.530 million and the total losses amounted to $ 14.2 billion.
“The magnitude of effective on-chain losses this week overshadowed all previous capitulation events, including March 2020, November 2018 and the liquidation that ended the last bull market in January-February 2018,” the firm detailed.
The daily loss peak on May 19 nearly tripled the March 2020 peak.
This capitulation was followed by a strong period of net profit taking, which according to Glassnode. “It could be seen as an opposite reaction to the downside, indicating that this event took a large part of the market by surprise.”
These net losses on the chain have resulted in a decrease in the effective capitalization of bitcoin.
“Currencies bought at higher prices have lower prices. Effective capitalization decreased by US $ 7 billion (-1.8%) this week from its all-time high, ”the report concluded.
In that period, the cryptocurrency market went through the worst moment in its short history after losing more than 50% of its total value in two weeks, going from close to US $2.5 trillion to less than US $1,25 trillion, hand in hand with the sudden fall of Bitcoin (BTC) and most cryptos.
The main cryptocurrency traded close to $32,000, less than half of the $65,000 that was sold on April 14.
The fall of Bitcoin, which represents about half of the market capitalization of cryptocurrencies (the sum of its sale price multiplied by the amount in circulation), caused a general collapse of the rest of the cryptocurrencies that, for the most part, had losses of between 50 and up to 70% in seven days.