Bitcoin: FTX’s implosion and its impact on profitability, blockspace demand, and more
, 2022-12-06 23:31:07,
- Bitcoin’s Realized Loss touched an all-time high when FTX collapsed.
- New demand for block space is re-entering the market.
- The market is dominated by small-sized transactions.
In the wake of FTX’s unexpected collapse, Bitcoin [BTC] exchanged hands for $15,000, trading at a 2-year low.
As the king coin bounced from the range lows of $16,065 to a high of $17,197 to begin recovery, on-chain analytics platform Glassnode assessed the impact of FTX’s implosion on market participants, miners, and BTC network activity.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
How big were the losses?
Glassnode first considered the quantum of losses incurred by the various cohorts of holders that make up the BTC market. An assessment of BTC’s Realized Profit and Loss metric revealed that the FTX debacle led BTC to record a single-day loss of $4.435 billion, an all-time high.
As BTC’s price regained the $17,000 price mark, a re-assessment of the metrics on a weekly moving average showed that losses have started to decline, Glassnode found.
Source: Glassnode
To further understand the severity of losses incurred by market participants, Glassnode assessed the Realized Capitalization metric. This metric displays the net sum of capital inflows and outflows into the network since its inception. It is used to determine the severity of capital outflows from the network after the market cycle peak.
Following FTX’s fallout, BTC’s Realized Capitalization fell to…
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