What’s the significance of Bitcoin holders not selling in panic despite losses?

The on-chain data for Bitcoin shows that investors are not selling their coins at significant losses currently. Glassnode, an on-chain analytics firm, reported that recently transacted coins were mostly acquired at the current spot price. The relevant indicator, the “entity-adjusted realized loss,” measures the total loss investors realize through their current selling. It works by going through the on-chain history of each being sold to see what price it was bought at. If the previous price for any coin was more than the current spot price, then the coin’s sale is leading to the realization of a loss. The entity-adjusted term is used because it only counts transactions/sales between different entities rather than individual wallets.

The Bitcoin entity-adjusted realized loss has been at relatively low values for a few months, despite the rally in the cryptocurrency’s price. However, recently, BTC has been going down during the past few weeks, but there has still not been any change in the indicator’s value. This is unlike what’s generally observed during drawdowns in the asset.

The fact that investors haven’t started selling at a loss would imply that there is still not enough panic in the market yet. At the time of writing, Bitcoin is trading around $25,000, down 5% in the last week.

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