The drop in Bitcoin price below $20,000 triggered a new wave of leverage reductions and liquidations affecting miners and long-term investors. These are the conclusions made by Glassnode analysts.

This capitulation was the second after the collapse of the Terra ecosystem. The amount of daily losses jumped to a record 2.4 billion dollars. The cumulative figure was $ 7,325 billion in three days.

The continuation of the bear market resulted in a decline in the profitability of the coins held. In this case, 49% of issued bitcoins remained among hodlers – almost two-thirds. In the past, the end of the crypto winter came after this figure dropped to 40-45% in the first case and 49-56% in the second case.

metric based UTXOwas 26.7% of “unprofitable” coins. Previously, the bottom was reached when this value rose to 50-81%.

Analysts estimated the total unit cost of mining a bitcoin at $17,600, based on a logarithmic regression model that links market capitalization with complexity. A decrease to this level was observed on June 17.

The transition to the reversal of the “difficulty band” indicator and the drop in the Puell Multiple metric confirms the capitulation of the miners. The current value of the latter (0.39) indicates a 61% decline in revenue for this category of market participants, below the average annual rate.

At the moment, the situation looks worse than during the “Great Migration” in May-July 2021. The miners’ position was more dramatic in 2014-2015 and 2018-2019, when the Puell Multiple fell to 0.31.

When the Bitcoin price dropped, miners reduced their positions from 5,000 BTC to 8,000 BTC per month; this is comparable to the capitulation in the 2018-2019 bear market. After leaving below ATH In 2017, this category of market participants moved to coin accumulation at the rate of 2200 BTC per month.

The stress was also experienced by long-term investors. Last week, the number of coins hodlers hold (for over a year) dropped from 20,000 BTC per day to 36,000 BTC.

On June 18, the LTH-SOPR indicator dropped to 0.64. A reversal occurred when the value dropped to the 0.4-0.6 range in previous bear markets. In other words, hodlers recorded a 40-60% loss.

“All categories of market participants are close or have reached the pain threshold. After the capitulations in the next week-months, the market will watch the signs of sellers’ exhaustion appear”, experts concluded.

Recall that well-known gold supporter Peter Schiff doubted that Bitcoin would ever reach below $20,000.

Earlier, Jeffrey Gundlach, head of DoubleLine Capital, allowed the price of the first cryptocurrency to drop to the $10,000 level.

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