Glassnode detected a $1.35 billion Bitcoin realized loss during this week's price slide, with long-term holders absorbing $770 million of the damage. That's a 12% seven-day decline to $65,500, marking the first major crash where long-term holders led the selling instead of short-term traders.
LTHs Take the Hit
Investors who bought before January 2026 triggered the bulk of this week's capitulation. Their $770 million in realized losses flipped the script from previous crashes where short-term holders dominated sell-offs. The shift suggests deeper market stress as seasoned holders finally abandon positions.
Futures Market Shakes Out
Long liquidations surged across futures markets as prices tumbled. Glassnode linked this derivatives pressure to the broader selloff, noting such liquidation waves often coincide with temporary market exhaustion points. Traders using leverage got squeezed fast when Bitcoin broke below key support.
Bottoming Process Unfinished
Historical patterns show LTH capitulation typically precedes bear market bottoms, but Glassnode warns this one isn't complete yet. The current pace means more selling pressure likely remains before the market stabilizes. This isn't the first time long-term holders broke cover in a crash, but the scale this week stands out.
With LTHs still selling heavily, analysts expect further volatility until the liquidation phase runs its course. Glassnode's next release will track whether this exhaustion leads to a sustainable bounce or more downside.
