The bitcoin market has experienced significant deleveraging, with prices dropping nearly 50% and chained entities suffering historic losses. During the week, the world’s largest cryptocurrency fell more than 47%, from a weekly high of $ 59,463 to a low of $ 31,327.

This sell-off has been so serious that it has raised the question in many minds as to whether the 2021 bull market remains in play.

“Looking at the number of unique entities on the chain that are now in profit, we can see that the current FUD (fear, uncertainty and doubt) bath has reduced profitable entities to 76%. This means that 24% of all on-chain entities currently hold UTXOs underwater. In a bull market context, this compares to three periods in 2011, 2013 and 2016. This metric also highlights the proportion of the market that has bought coins higher and therefore can become panicked sellers, ”said the chain data and intelligence platform in a note.

The note also pointed out that much of the recent sales activity was driven by short-term holders, those who owned coins purchased in the past six months.

Moreover, during this capitulation, the sale of one to three year old coins was in fact much smaller and decreased in proportion to the total activity. “This suggests that the elders did not panic to sell or rush for releases,” the note added.

In terms of unreserved earnings, Glassnode found that about 9-9.5% of current market capitalization ($ 700 billion) existed as unrealized losses, which equates to roughly $ 65 billion in value under -Marine.

“Although this is a historic capitulation event, relative to the size of the market, the value of underwater positions on the chain is actually relatively small. We can compare that to relative unrealized losses of 44% in March 2020 and over 114% in November 2018, ”he says.