Bitcoin Sharks are Disappearing! Fresh Lows are About to Attack

Bitcoin sharks are disappearing and bitcoin traders fear that Bitcoin prices may plummet more

Bitcoin sharks are disappearing as numbers fall 80% in a year. According to the most recent data from on-chain analytics firm Glassnode, there are now only 23,000 wallets with a BTC balance of one million dollars or more. Bitcoin millionaires are surely feeling the pinch of this volatile bear market.

The 2017-2019 closures, according to Jake Wujastyk, VP at TrendSpider LLC, are an "inevitable area" for Bitcoin sharks, the largest cryptocurrency to test. Wujastyk adds that there is a good chance that Bitcoin prices may decline again. Bitcoin finished December 2017 at US$13,880, down from US$19,666 at the apex of the last bull run. Shortly after reaching the charts, the cryptocurrency suffered a harsh bear market. In the first half of 2022, Bitcoin experienced a significant rally, reaching a yearly high of US$13,880 in July 2019. Bitcoin prices are indicating how much the crypto market has plunged from the highs.

Wujastyk reported earlier this month that Bitcoin has established a bear flag pattern. At the time of writing, the biggest coin was trading on the Bitstamp platform for $16,561. The crypto king has now dropped by more than 76% from its all-time high of $69,044 set in November.

Last month, famed trader Peter Brandt stated that there was still a chance that Bitcoin may drop to zero. The stunning downfall of the FTX exchange has dealt significant damage to cryptocurrency's credibility. In a recent Wall Street Journal opinion piece, American businessman Andy Kessler suggests that the end price of cryptocurrency might be $0.

According to Glassnode, which analyses different cohorts of BTC wallets, there were 23,245 with a balance of more than US$1 million as of November 25.

In comparison, there were 112,898 "millionaire" wallets on Nov. 8, 2021, when the figure peaked as BTC/USD reached its current all-time high of US$69,000.

Such addresses have declined in step with the spot price, with owners selling at various stages throughout Bitcoin's year-long bad market.

According to statistics from Cointelegraph Markets Pro and TradingView, millionaire wallet numbers are down roughly 79% during that period, while BTC/USD has had a maximum drawdown of 77% this month.

Meanwhile, as Cointelegraph observed, the scenario in BTC looks a little different. Certain types of wallets have accumulated after the FTX meltdown.

Furthermore, as co-founders of trading suite Decentrader pointed out last week, exchange customers withdrawing cash to private storage and consolidating wallets are most likely responsible for the substantial surge in wallets with 1 BTC or more.

As of Nov. 27, there were over 952,000 of them, a new high in Bitcoin history.

Nonetheless, Glassnode reveals that even the lowest classes of investors — those with 0.01 BTC or more in their wallets — have lately increased in number.

Overall, addresses with a non-zero balance have been declining since November 18, according to statistics – a fairly unusual trend breaks last observed in April 2021.

Bitcoin investors are not the only ones who have given up in the present market. Bitcoin miners are trying to stay profitable in the face of falling pricing.

Because Bitcoin miners are under financial pressure to remain profitable, the BTC mining hash rate suffers. A decrease in Bitcoin's hash rate hinders BTC transactions. Block times exceeded 11 minutes, according to HashRate Index.

Despite the current hurdles, many feel that surrender is necessary for the next bull run to begin. According to Glassnode, with so many organizations now at a loss at this point of the bear market following the FTX crash, Bitcoin and broader market sentiment will need to recover to inspire fresh money to drive a bull run. If the mood does not improve, the surrender may fall short of prior Bitcoin cycles.

Bitcoin had US$10.8 billion in 7-day realized losses in November. The highest realized loss in Bitcoin history occurred in June 2022, when US$19.8 billion was recorded. Such losses indicate that a big amount of Bitcoin has changed hands at reduced pricing.

Popular crypto investing saying is "you cannot lose if you do not sell." Unrealized losses are calculated by comparing the total market capitalization to the total market capitalization of the Bitcoin market. The unrealized loss of 56% in November 2022 is the highest in the current bear market. Unrealized losses for Bitcoin holders reached an all-time high of 86% in 2014-2015. The current unrealized losses rank fourth in Bitcoin history.