{"id":400375,"date":"2022-01-28T12:18:20","date_gmt":"2022-01-28T09:18:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bull-or-bear-market-bitcoin-losses-from-panic-selling-mount-in-2022\/"},"modified":"2022-01-28T12:18:20","modified_gmt":"2022-01-28T09:18:20","slug":"bull-or-bear-market-bitcoin-losses-from-panic-selling-mount-in-2022","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bull-or-bear-market-bitcoin-losses-from-panic-selling-mount-in-2022\/","title":{"rendered":"# &#8216;Bull or bear market?&#8217; Bitcoin losses from panic selling mount in 2022"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40f1b770b7c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40f1b770b7c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bull-or-bear-market-bitcoin-losses-from-panic-selling-mount-in-2022\/#On-chain_loss_selling_now_%E2%80%9Cconsistent%E2%80%9D\" >On-chain loss selling now &#8220;consistent&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bull-or-bear-market-bitcoin-losses-from-panic-selling-mount-in-2022\/#Big_players_dominate_the_transactions\" >Big players dominate the transactions<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># &#8216;Bull or bear market?&#8217; Bitcoin losses from panic selling mount in 2022 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) sellers&#8217; losses are mounting as the BTC price downturn shows that some investors are panicking at current prices.<\/p>\n<p>Data from on-chain analytics firm <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/studio.glassnode.com\/metrics?%253Bm=indicators.Sopr&amp;%3B%253BmAvg=7&amp;%3B%253Bs=1423829821&amp;%3B%253Bu=1581509821&amp;%3B%253Bzoom=1825&amp;%3Ba=BTC&amp;%3Bm=indicators.Sopr&amp;a=BTC&amp;m=indicators.Sopr&amp;s=1590969600&amp;u=1603609199&amp;zoom=\">Glassnode<\/a> and trading suite <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decentrader.com\/charts\/spent-output-profit-ratio-sopr\/\">Decentrader<\/a> shows that in January, more and more BTC entities have been selling coins for less than they purchased them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"On-chain_loss_selling_now_%E2%80%9Cconsistent%E2%80%9D\"><\/span>On-chain loss selling now &#8220;consistent&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While no one wants to sell an asset without profit, Bitcoin downtrends tend to see a certain cohort of market participants do so anyway \u2014 for fear of greater losses if they stay put.<\/p>\n<p>This panic selling is often derided by long-term investors, who argue that stronger, more liquid players will scoop up the supply to the detriment of those who sold.<\/p>\n<p>Analyzing the spent profit output ratio (SOPR) metric, Decentrader analyst Philip Swift <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PositiveCrypto\/status\/1486586844720644097\">revealed<\/a> that while selling overall remains relatively low, panic has set in this year.<\/p>\n<p>&#8220;SOPR (Spent Output Profit Ratio) has had a consistent patch of on-chain loss selling recently,&#8221; he summarized to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers this week.<\/p>\n<p>SOPR takes the aggregate &#8220;price bought versus price sold&#8221; data for BTC in a given period to produce an overall impression of whether sellers are in profit or at a loss.<\/p>\n<p>As <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/unconfiscatable\/introducing-sopr-spent-outputs-to-predict-bitcoin-lows-and-tops-ceb4536b3b9\">noted<\/a> by its creator, Renato Shirakashi, the psychology of selling at a loss means that only those in panic mode are likely to do so, and by extension, the shallower selling seen this month could be cause for relief.<\/p>\n<p>&#8220;It&#8217;s interesting to note that the selling at a loss the past few months has been much more shallow vs. 2018\/19 bear market, but much deeper than we saw in either bull run period,&#8221; Swift nonetheless added. <\/p>\n<blockquote><p>&#8220;Is this a bull or bear market rn?&#8221;<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/c43191e1-2967-46fc-9ebe-19650b759d42.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin spent profit output ratio (SOPR) chart (screenshot). Source: Decentrader<\/em><\/figcaption><\/figure>\n<p>As Cointelegraph reported, Bitcoin price activity has suprised with its 50% retracement since November, this being somewhat uncharacteristic of what should be the most bullish part of its halving cycle.<\/p>\n<p>Zooming out, the whole of 2021 arguably looks like a consolidation zone after rapid gains a year ago.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Big_players_dominate_the_transactions\"><\/span>Big players dominate the transactions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Should selling be from low-volume retail investors, this would meanwhile chime with other data covering on-chain transactions.<\/p>\n<p><strong><em>Related:\u00a0Derivatives data suggests that Bitcoin\u2019s $39K bounce was a mere blip<\/em><\/strong><\/p>\n<p>As Glassnode <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/glassnode\/status\/1486700532014227458\">confirmed<\/a> this week, the majority of transactions now involve significant sums of $1 million or more. This, the firm concluded, points to institutions, not retail, as the driving on-chain force.<\/p>\n<p>&#8220;Bitcoin transfer volumes continue to be dominated by institutional size flows, with more than 65% of all transactions being larger than $1M in value,&#8221; a tweet read. <\/p>\n<blockquote><p>&#8220;The uptrend in institutional dominance in onchain volumes started around Oct 2020 when prices were around $10k to $11k.&#8221;<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/06aacb2b-0ae7-4547-80a0-8c570a560dcf.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin transfer breakdown annotated chart. Source: Glassnode\/ Twitter<\/em><\/figcaption><\/figure>\n<p>2022 has been announced as the year in which institutions indeed return to the Bitcoin space.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bull-or-bear-market-bitcoin-losses-from-panic-selling-mount-in-2022\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# &#8216;Bull or bear market?&#8217; Bitcoin losses from panic selling mount in 2022 &#8221; Bitcoin (BTC) sellers&#8217; losses are mounting as the BTC price downturn shows that some investors are panicking at current prices. Data from on-chain analytics firm Glassnode and trading suite Decentrader shows that in January, more and more BTC entities have been&#8230;<\/p>\n","protected":false},"author":1,"featured_media":400376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvNThjYjNkNTgtZTkwMy00NjU4LTg3NDAtMmMxZDQxN2IxOWY4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,73785],"class_list":["post-400375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=400375"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/400376"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=400375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=400375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=400375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}