Bitcoin’s recent price decline has triggered significant losses among investors, particularly those who purchased the cryptocurrency shortly before the market downturn. According to Glassnode, between February 25 and February 27, traders collectively realized over $2.16 billion in losses as Bitcoin’s value dipped below $90,000 for the first time since November 2024.
An analysis of the market data reveals that short-term holders bore the brunt of the downturn. Those who acquired Bitcoin within the week leading up to the crash faced the steepest losses, amounting to $927 million—approximately 42.5% of the total realized losses. Meanwhile, investors who had entered the market within the month preceding the drop lost around $678 million, making up 31.3% of the overall losses.
Interestingly, traders who had bought Bitcoin just 24 hours before the crash accounted for only 14% of the total realized losses, equating to roughly $322 million. Additionally, individuals who had held onto their assets for up to three months before the market decline contributed 11.9% of the total losses, totaling $257 million.
On the other hand, long-term holders experienced considerably lower losses compared to recent buyers. Those who had been holding Bitcoin for three months to a year saw much smaller losses, with investors who purchased within the last six months losing only $6.5 million or about 0.3% of total realized losses. Similarly, individuals who had held their Bitcoin for a full year before the crash suffered the least losses, making up only 0.15% of the total, which amounts to roughly $3.2 million.
This trend suggests that long-term holders remain relatively unfazed by the price fluctuations, while newer investors are more prone to selling under pressure. The resilience of seasoned holders highlights the broader market dynamic where experienced investors are more likely to weather volatility, while those who entered recently may react emotionally to sudden price swings.
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Meanwhile, market intelligence firm IntoTheBlock has identified another key factor contributing to the price drop: selling pressure from Bitcoin’s largest holders, often referred to as “whales.” These entities, typically owning more than 1,000 BTC—equivalent to nearly $89 million—have been reducing their holdings, thereby increasing supply and exerting downward pressure on prices.
Notably, it is not just standard whales driving this trend, but a specific subset known as “mega whales.” These are investors who hold over 10,000 BTC, an amount valued at approximately $889 million at current market rates. Their selling activity has intensified, adding to the overall bearish sentiment in the market.
As these mega whales offload large portions of their holdings, it amplifies volatility, making the market more susceptible to sudden price swings. This phenomenon illustrates how large-scale investors can have an outsized influence on Bitcoin’s price movements, often dictating short-term trends.
