Bitcoin’s realized losses fourth largest on record while unrealized losses increase. You cannot lose if you do not sell.

 

Bitcoin’s realized losses fourth largest on record while unrealized losses increase.   You cannot lose if you do not sell.  BlockFi is the latest crypto firm to file for bankruptcy following the collapse of Sam Bankman-Fried's crypto empire. Crypto: BlockFi files for bankruptcy on the heels of FTX collapse, https://youtu.be/XHpCH_FtHNo. BlockFi will file for Chapter 11 bankruptcy protection later today, a source at the company told Decrypt.
 

In an official announcement, the New Jersey-based company said it "will focus on recovering all obligations owed to BlockFi," but that "recoveries from FTX will be delayed" due to the ongoing bankruptcy proceedings at the fallen crypto exchange.

BlockFi, which let users earn yield for depositing idle cryptocurrencies on the platform, first halted withdrawals on November 11, the same day FTX filed for bankruptcy. “We, like the rest of the world, found out about this situation through Twitter,” BlockFi wrote in a letter at that time. “We are shocked and dismayed by the news regarding FTX and Alameda.”

The crypto lender is also laying off a large portion of its staff.

In June, BlockFi announced a revolving $250 million line of credit with FTX roughly a week after the crypto lender cut staff by roughly 20%. It said that it was reducing its headcount due to "the dramatic shift in macroeconomic conditions worldwide."

BlockFi isn't the only platform that FTX has bailed out. The crypto exchange also doled out a $120 million loan in August 2021 to the Liquid Group after the latter suffered a $90 million hack. Liquid was then acquired by FTX in May 2022.

The crypto platform suspended withdrawals on November 15 and has yet to reopen them.

Voyager Digital also landed a $500 million line of credit in June from FTX's sister firm Alameda Research. Voyager later filed for bankruptcy on July 6.

As it is, the Crypto Fear & Greed Index dropped from 28 to 26 today.
 

Bankruptcies, shrinking profit margins and traders realizing hefty losses are all signs of capitulation from various Bitcoin market participants. 

One thing miners, short-term and long-term holders have in common is they are losing in the market right now.
 

According to an on-chain analysis from Glassnode, the scale of both realized and unrealized losses amongst Bitcoin holders is one of the heaviest capitulation events in BTC’s history. Capitulation is hindering all groups from the increasing number of bankruptcies and dwindling miner revenue.
 

November recorded $10.8 billion in 7-day realized losses for Bitcoin. The largest recorded realized loss in Bitcoin’s history is June 2022 when $19.8 billion was recorded. Such losses show that a large volume of Bitcoin has changed hands at discounted prices. 

 

I entered the market in February 2020 at a price of 10k per bitcoin, perhaps for many who enter the market this month they can see great gains in a few years, as I experienced them in 2020 and 2021. Like many, I continue thinking that BTC will cost more than a million dollars within the next 5-10 years.

 

San Jose COSTA RICA, November 28, 2022. rafalvilagut@gmail.com.