Bitcoin Market Downturn Leads to $2.16B in Losses

The latest downturn in the Bitcoin ($BTC) market has caused significant losses. According to Glassnode data, the recent sell-off has resulted in cumulative losses totaling $2.16 billion, with many new market entrants exiting. The blockchain analytics platform shared insights on the impact of Bitcoin’s decline on social media.

> 📊 Who is realizing the most losses in #Bitcoin’s latest #cryptocrash?
>
> Between Feb 25-27, over $2.16B in realized losses came from the most recent market entrants.
> We break down the losses by age cohorts, contrast with prior peaks, and assess the market impact. 🧵👇
> — glassnode (@glassnode) February 27, 2025

New Bitcoin Traders Exit Market, Resulting in $2.16B in Losses

Glassnode’s analytics indicate that many new investors are leaving the Bitcoin market after its recent dip. A total of $2.16B has exited from April 25 to 27 in sell-offs. The majority of these losses are attributed to short-term Bitcoin holders, especially those who purchased Bitcoin recently.

Market data reveal that those who bought Bitcoin in the last week contributed nearly $927M in losses, representing 42.85% of the total losses from young cohorts. Additionally, short-term holders who held Bitcoin for one week to one month experienced $678M in losses (31.3%), while those holding it for one to three months saw $257M in losses (11.9%). Holders for 24 hours recorded $322M in losses (14.0%).

These analytics suggest that the recent Bitcoin price correction has primarily affected new market entrants. In contrast, long-term holders have remained largely unaffected, with minimal losses from those holding Bitcoin for more than three months.

Despite Panic Selling by Short-Term Holders, Long-Term Bitcoin Holders Remain Steady

Among short-term holders, those with Bitcoin for three to six months experienced $6.5M in losses, a mere 0.3% of total young cohort losses. Meanwhile, holders for six to twelve months incurred $3.2M in losses (approximately 0.15%). Although short-term traders are leaving the market, long-term holders display resilience amid the downturn. Observers are closely monitoring whether this leading crypto asset can establish a strong support level soon.