The Bitcoin market has had another challenging week as Bitcoin continues to drop below the $34,000 threshold. This leaves BTC’s total drop from its $69,000 ATH in November holding at 49.9%.

This is currently the second worst sell-off since the 2018-2020 crypto “winter,” only to be eclipsed by July 2021, where the market is down -54% from the highs set in April. The decline is markedly higher than the -20% to -40% range seen during the bull cycle corrections in 2017 and 2021.


Looking at the market-wide Net Profit/Loss Index, a measure of daily capital inflows and outflows from the Bitcoin network, we can see that investors are incurring losses up to to $2.5 billion after BTC's crash to $33,000 . The event marked the biggest losses in history, roughly matching a $2.61 billion net loss from May 2021, following China's widespread crypto crackdown .


On the other hand, after a while BTC has been continuously pushed investors onto exchanges, be it for sale or divestment from further losses, exchanges are now seeing an increase in overall cash flow. increase again. From December 7 to December 28, 2021, the BTC reserves of the 21 major platforms overseen by CryptoQuant increased from 2,396 million to 2.428 million BTC.


As of January 22, the total amount of BTC on the exchange is hovering at 2,366 million BTC even though spot price action is at a six-month low.


Additionally, the opportunity for a market decline was capitalized with multi-million dollar BTC purchases from a number of prominent whale wallets, according to data from CC15Capital.


Another interesting finding by CC15Capital is that since August, a major player has accumulated over 1 billion USD in BTC from an initial balance of zero.


However, this phenomenon continues to occur as long-term holders are still placing great faith in Bitcoin. A typical example is the case of MicroStrategy CEO Michael Saylor, with the statement that he will not sell any BTC despite the market going into a long-term “winter”.


Combined with the strong accumulation wave of miners is extremely strong and 30% of Bitcoin supply has turned from profit to loss . Perhaps, these are the only positive data in favor of BTC at the moment because despite the Bitcoin price recovering to $ 37,550, the majority of investors are still pessimistic about the upcoming outlook.