Bitcoin’s recent price plunge led to over $2.16 billion liquidation primarily affecting recent investors.
According to an analysis by Glassnode, during the past week, the crypto market saw $2.16 billion in liquidation losses following a crash that began on February 25, when Bitcoin’s price fell below $90,000 for the first time since November 2024.
The report details the losses experienced by traders based on when they purchased Bitcoin and compares the impact of this recent crash to earlier market surges in 2024. According to GlassNode, Most of these losses were sustained by traders who had bought Bitcoin the week before the crash.
In contrast, those holding Bitcoin for more extended periods experienced less significant losses. This suggests that investors who entered the market in the second half of 2024 or earlier largely hold onto their assets, while more recent buyers are selling under pressure, according to Glassnode.
Traders who purchased Bitcoin in the past week suffered the highest liquidation and losses, totaling $927 million, representing approximately 42.5% of the total realized losses. The second largest group of losses came from those who bought within the past month, amounting to $678 million, or 31.3% of the total losses.
Traders who bought Bitcoin within the 24 hours leading up to the crash accounted for 14% of the losses, totaling $322 million. Those who purchased Bitcoin within the past three months contributed 11.9% to the total losses, or $257 million.
Source: Glassnode X
On the other hand, long-term holders, specifically those who purchased Bitcoin between three months and a year before the crash, suffered far less. Traders who bought Bitcoin six months before the price drop experienced only a minor loss of $6.5 million, or 0.3% of the total realized losses.
Similarly, those who had held Bitcoin for a year or more incurred the least impact, with only $3.2 million, or 0.15%, of the total liquidation.
Additionally, Glassnode’s data highlights that February 25 saw the most significant single-day loss of the year, with realized losses amounting to $1.13 billion. This loss was 25% greater than the previous single-day loss on February 3, which totaled $848 million.
