The post Japan’s Carry Trade Chaos Brings FTX-Level Losses To Short-term Bitcoin Holders appeared on BitcoinEthereumNews.com.

Entities with less than 1 BTC realized losses not seen since 2022, while whales accumulated. Entities holding less than 1 BTC have been offloading their tokens in droves amid the chaos induced by Japan’s recent carry trade unwinding. Short-term holders “puked out so many coins, they locked in losses at a similar scale to when FTX collapsed,” said onchain data analyst James Check. A whopping $560 million was sold by short-term holders yesterday, while larger Bitcoin holders have increased their holdings by 200,000 BTC since August 1, according to data from IntoTheBlock. Bitcoin Realized Loss By Cohort. Source: James Check Whales have been ramping up their Bitcoin holdings since late May. This trend underscores how large holders take advantage of price declines to accumulate more Bitcoin. BTC peaked at $71,000 on June 5 and began plummeting until it bottomed exactly one month later when the asset changed hands for roughly $50,000. Whales began to whet their appetites in early June and have continued to buy Bitcoin throughout the past two months. The stacking went vertical in the past couple of days, just as financial markets around the world went into a tailspin late last week. Notably, short-term holders offloaded their holdings in a flurry these past couple of days, only for whales to gobble them up. Supply Held By Entities with 100-1K BTC According to Glassnode, long-term holders have flipped their trend since April. A downtrend was noted among long-term holder supply, which peaked at 14.3 million Bitcoin or $614 billion in November 2023. Until April 2024, investors let go of more than 1 million BTC. Today, 13.6 million BTC is still in their hands. During the same time period, short-term holders aggressively accumulated Bitcoin, although these investors bucked the trend in recent months. After hitting a multi-year bottom in…

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Filed under: News - @ August 7, 2024 7:24 am