Key Points
- Over $2.16 billion in realized losses were incurred due to the recent Bitcoin price drop, primarily by recent buyers.
- Glassnode’s analysis shows that the largest single-day crypto crash this year occurred on Feb. 26, resulting in $1.13 billion in losses.
The recent price drop in Bitcoin (BTC) resulted in more than $2.16 billion in realized losses. The majority of these losses were suffered by individuals who had recently purchased BTC.
Analysis of Losses
According to a thread of analysis by Glassnode, the crypto crash began on Feb. 25 when BTC’s price fell below $90,000 for the first time since November 2024. This resulted in traders losing over $2.16 billion in realized losses from Feb. 25 to Feb. 27.
Glassnode’s breakdown shows that the losses were heavily influenced by when traders purchased BTC and the market impact of the recent crash compared to the previous market spike this year. The brunt of the losses were borne by those who purchased BTC within a week of the price crash.
Impact on New and Long-Term Holders
On the other hand, long-term holders of BTC experienced fewer losses compared to recent buyers. This suggests that those who bought BTC in the second half of 2024 or earlier held onto their assets, while recent buyers sold under pressure.
The most significant losses, approximately $927 million or 42.5% of total losses, were suffered by traders who bought BTC within the past week. The second-largest loss was experienced by traders who bought BTC within a month before the price drop, amounting to $678 million or 31.3% of total losses.
Those who purchased BTC within 24 hours before the crash accounted for 14% of the total loss, which is around $322 million. Traders who bought BTC up to three months before the price drop contributed 11.9% of total losses or $257 million.
In contrast, those who held onto their Bitcoin for longer, between three months to a year before the crash, experienced far fewer losses. Traders who bought BTC within six months before the price drop lost only $6.5 million or 0.3% from total losses.
Those who purchased BTC within one year suffered the least losses, with only 0.15% of total losses or around $3.2 million.
Glassnode’s research also highlighted that Feb. 26 was the largest single-day crypto crash this year, with an aggregated realized loss amounting to $1.13 billion. This figure is 25% larger than the previous single-day market drop on Feb. 3, which resulted in $848 million in losses.
