Glassnode Report: Bitcoin's 32% plunge marks a mid-term market slump in this round of trends

Glassnode's weekly on-chain insights study highlights the severity of the recent market decline, linking it to the "correlation-1" event that led to the plunge in major assets and stocks such as Bitcoin. According to Glassnode, this event caused the spot price of Bitcoin to reach the key psychological level of $51,400 and triggered an 11 percent drop in open Bitcoin futures positions overnight. The report also showed that only 7 percent of short-term holders' supply remains in profit, a figure not seen since the FTX collapse in 2022, which is also more than one standard deviation below the metric's long-term average, suggesting that there is a significant degree of financial stress among recent buyers. Additionally, Glassnode reports a significant spike in realized losses, totaling approximately $1.38 billion. Notably, 97% of these losses were borne by short-term holders, emphasizing their vulnerability during the decline. The report notes that this level of realized losses is historically significant, ranking 13th in dollar terms, reflecting widespread investor panic.

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