Bitcoin is down by around 30% in the past seven days and the plunge has caused a nearly commensurate drop in the percentage of wallets in profit. Data acquired from Glassnode shows that the Bitcoin price plummet has resulted in almost 25% of unique on-chain entities being at a loss.
The situation also has some similarities to the past extreme downside price action episodes that have interrupted the bullish advances. The $15,000 price pullback over the past several days has made many wallets go underwater.
Amid the Black Thursday crash of March 2021, the unique on-chain entities that were at a loss also approached the 25% level as BTC lost around 50%. The 2019 rally from the $3,500 bottom from the previous year’s bear market also had the same temporary break that saw the total percentage of unique wallets at a loss also drop to 25%.
In all the past situations where the percent of all entities at a loss reached around 25% in a bullish advance, Bitcoin rapidly rebounded to post a new high.
Glassnode’s price drop from the all-time high chart also shows a similar picture of the extent of severity of the current bitcoin decline. Currently, bitcoin’s correction from its all-time high is 33%, which is the most since bitcoin exploded above $20,000 back in November 2021.
In January 2021, the drop from all-time highs also shortly touched 27% as BTC’s uninterrupted price quadrupling that started in September last year cooled off as bitcoin lost nearly $10,000 within seven days.
Based on previous reports, bitcoin inflows to exchanges have increased in the past seven days, reaching some levels that have not been seen since Black Thursday of March 2021.
Notably, the widespread selloff in the past week has seen the general crypto market capitalization lose up to $700 billion in seven days. Over half of that drop happened in the last 24 hours with many cryptos losing 15% to 30% in 24-hour trading prices.