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Bitcoin hodlers sit on record 8M BTC in unrealized loss, data shows

Bitcoin (BTC) is beating records this Christmas as sub-$17,000 price action sparks unrivaled pain for hodlers.

Data from on-chain analytics firm Glassnode shows that both short-term and long-term investors are sitting on more losses than ever before.

New or old, Bitcoin hodlers nurse serious losses

Since the FTX meltdown sent crypto markets tumbling, BTC/USD has failed to recover.

Its descent to levels last seen two years ago has created problems for hodlers who bought in more recently — logically, they are nursing negative returns on their positions.

The pain runs deeper than that, however, and Glassnode now shows the extent of unrealized losses plaguing newcomers and old hands alike.

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Top five crypto winners (and losers) of 2022

Cointelegraph looks back on the best and worst-performing cryptocurrencies of 2022 among the top 100 assets by market capitalization. We used the highest and the lowest year-to-date (YTD) returns through the close of Dec. 25, 2022.

Overall, Cryptoindex.com 100 (CIX100), an index that tracks the 100 best-performing cryptocurrencies, fell nearly 68% YTD, suggesting most top coins underperformed in 2022.

CIX100 weekly price chart. Source: TradingView

Stablecoins are naturally omitted from the list below. Similarly, coins tracking the value of gold and similar mainstream assets have also been ignored.

Instead, the coins mentioned below include decentralized currencies, smart contract tokens, exchange tokens and others.

Top five crypto of 2022

1. GMX (GMX)

YTD return: 111%Sector: Decentralized exchangeMarket Cap: $379.4 million

GMX acts as a utility and a governance token within the GMX decentralized exchange (DEX) ecosystem and is the best-performing digital asset among the top 100 coins (excluding stablecoins).

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Bitcoin price volatility due within days, new take says as BTC flatlines at $16.8K

Bitcoin (BTC) hodlers are enjoying another day of zero volatility on Dec. 26 as hopeful forecasts se signs of a trend change.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Opinions diverge further over BTC price bottom

Data from Cointelegraph Markets Pro and TradingView confirmed more sideways action near $16,800 for BTC/USD on Boxing Day.

The pair took the holiday period in stride, with reduced volumes having no impact on an already deflated market experiencing its lowest volatility on record.

With few trading opportunities in the last week of “Do Nothing December,” analysts attempted to ready the ship for potential headwinds to come.

“If BTC fails to reclaims ~$17,150 as support before the end of the year… Then $BTC will establish the $13900-$17150 range as its new playground,” Rekt Capital tweeted in a fresh update.


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Bitcoin accumulation addresses near record 800K despite whale selling

Bitcoin (BTC) accumulation is nearing a new milestone this Christmas as redistribution of the BTC supply continues.

Data from on-chain analytics firm Glassnode shows that the total BTC balance of so-called “accumulation addresses” is nearing all-time highs.

"HODL-only" BTC addresses climb closer to 1 million mark

Behind the scenes in the 2022 Bitcoin bear market, certain entities are in no doubt over their BTC investment strategy.

According to Glassnode, Bitcoin accumulation addresses are more numerous than ever before, while the BTC balance they contain is almost at a record high.

“Accumulation addresses are defined as addresses that have at least 2 incoming non-dust transfers and have never spent funds,” the firm’s description explains.

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Bitcoin exchange withdrawals sink to 7-month low as users forget FTX

Bitcoin (BTC) exchange users have forgotten all about the FTX scandal this Christmas, data shows.

According to on-chain analytics firm Glassnode, exchange outflows have now hit their lowest levels in over six months.

Still not your keys, still not your coins?

As Bitcoin volatility sets a new record low in what is being called “Do Nothing December,” exchange users’ habits are also rapidly adjusting to the current climate.

After seeing an overwhelming surge in light of the FTX meltdown, BTC withdrawals from exchange wallets have entirely reversed the spike which began around six weeks ago.

Having hit a peak of 142,788 BTC on Nov. 14, outflows from the trading platforms tracked by Glassnode have declined over ten times.

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Bitcoin and these 4 altcoins are showing bullish signs

Cryptocurrency markets lack any signs of volatility going into the year-end holiday season. This suggests that both the bulls and the bears are playing it safe and are not waging large bets due to the uncertainty regarding the next directional move. This indecisive phase is unlikely to continue for long because periods of low volatility are generally followed by an increase in volatility.

Willy Woo, creator of on-chain analytics resource Woobull, anticipates that the duration of the current bear market may “be longer than 2018 but shorter than 2015.”

Crypto market data daily view. Source: Coin360

The crypto winter has resulted in a loss of more than $116 billion to the personal equity of 17 investors and founders in the cryptocurrency space, according to estimates by Forbes. The carnage has been so severe that the names of 10 investors were removed from the crypto billionaire list.

Could the bear market deepen further or is it showing signs of starting a relief rally? Let’s look at the charts of Bitcoin (BTC) and select altcoins to find out.

BTC/USDT

Bitcoin has been trading in a tight range near the 20-day exponential moving average ($16,929) for the past few days. This indicates that the bears are defending the level but the bulls have not given up yet.

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BTC price foregoes Santa rally as Bitcoin volatility hits record low

Bitcoin (BTC) failed to deliver a Santa rally for Christmas 2023 as Dec. 25 offered even more sideways BTC price action.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin volatility index plumbs lowest ever levels

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD clinging to a tight trading range around $16,800.

The pair had stubbornly refused to offer any form of volatility through much of the week, with an absence of a macro trigger reinforcing lackluster performance.

“Bitcoin's volatility is at an all-time low,” William Clemente, founder of crypto research firm Reflexivity, noted alongside a chart of the Bitcoin historical volatility index.

Bitcoin historical volatility index 1-week candle chart. Source: TradingView

He added that the total crypto market cap had retraced the entirety of its gains from its 2017 highs and was now testing those highs as support.

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What are reflection tokens and how do they work?

Yield farming, liquidity mining, and staking have become common practices in the crypto market due to the remarkable growth the DeFi ecosystem has witnessed in recent years. These features enable users to earn interest on their crypto holdings by locking them as deposits for specific periods.

The concepts sound appealing but there's one big risk: the potential decline in the valuation of the locked assets. In other words, users will see losses in U.S. dollar terms if the asset's value drops during the lock-in period.

These shortcomings have raised "reflection tokens" as a viable alternative. In theory, reflection tokenomics remove the necessity of locking tokens while still offering staking-like benefits. 

What are reflection tokens?

The projects backing the reflection tokens charge a penalty tax (calculated in percentages) on each transaction. In turn, they give out the fee to all token holders depending on the percentage of assets they hold.

As a result, reflection tokens' holders do not need to lock their assets for a certain period to earn rewards. They earn their income almost instantly in most cases when a transaction is made, with the functions governed by a smart contract.

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SBF sent home, FTX heads plead guilty, and Binance gets Voyager assets: Hodler’s Digest, Dec. 18-24

Top Stories This Week

SBF sent home after his parents put up their house to cover his astronomical bail bond

Sam Bankman-Fried will spend the holidays with his family in Palo Alto, California, after his parents secured $250 million in bail funds with the equity in their home. Among the conditions of the bail are home detention, location monitoring and his passport surrender. The former FTX CEO signed surrender documents on Dec. 20, allowing his extradition from the Bahamas to the United States, where he faces eight charges that could keep him behind bars for the rest of his life. Bankman-Fried will now wait for his sentence at home with his family.

Caroline Ellison and Gary Wang plead guilty to fraud charges

Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to federal fraud charges. Ellison, however, is working on a plea deal with the Office of the United States Attorney for the Southern District of New York, which would evade all the seven charges against her, resulting in a $250,000 bail bond and prosecution only for criminal tax violations. The agreement doesn’t provide protection against any other charges that Ellison might face from any other authorities. Wang and Ellison are reportedly cooperating with U.S. authorities on investigations related to FTX’s collapse.

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BTC price levels to watch as Bitcoin limps into Christmas under $17K

Bitcoin (BTC) entered the Christmas holiday period unchanged at $16,800 as an eerie lack of volatility persevered. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Hopeful price target sees Bitcoin at $17,400 

Data from Cointelegraph Markets Pro and TradingView confirmed another day of an almost imperceptible range for BTC/USD just below $17,000.

The pair had struggled to break out despite multiple potential catalysts coming from United States economic data prints.

With the holiday season ahead, a Santa rally appeared unlikely, while a lack of significant events to come further reduced the chances of flash volatility.

In weekend analysis, however, Michaël van de Poppe, founder and CEO of trading firm Eight, nonetheless reiterated the possibility of a step higher to near $17,500 should current levels hold.


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BTC price ignores US PCE data at $16.8K as Bitcoin rejects volatility

Bitcoin (BTC) saw a flicker of volatility around the Dec. 23 Wall Street open as the latest United States inflation data came in line with expectations.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin sees "crumb" of volatility on PCE

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD briefly decoupling from solid sideways action to dip to $16,750 on Bitstamp.

The impact of the November U.S. Personal Consumption Expenditures (PCE) Price Index print was notably muted, this despite the data forming a key component of Federal Reserve policy.

Even in the low-volume, low-volatility environment Bitcoin continues to trade in, PCE barely moved markets as traders began to accept that Christmas 2022 may be an underwhelming one.

“Hope you enjoyed that little crumb of vol, it's probably the last,” popular Twitter account Byzantine General responded.

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Top-five most Googled cryptocurrencies worldwide in 2022

Cryptocurrencies have suffered immensely in 2022 from the onslaught of a hawkish Federal Reserve and the implosions of crypto platforms FTX, Terra, Celsius Network, and others.

What were the most-searched cryptocurrencies in 2022?

Notably, the market valuation of all the cryptocurrencies combined has dropped 70% year-to-date (YTD) to nearly $770 billion, signifying massive capitulations by traders and investors alike.

The waning demand has also pushed the internet requests fo6r the keyword "buy cryptocurrency" to their lowest since February 2020, according to Google Trends.

Interest in the the keyword "buy cryptocurrency" over the past five years. Source: Google Trends

Nonetheless, the latest Accenture's 2022 Global Consumer Payments report shows that retail interest in cryptocurrencies remains high despite 2022's market crash. The reasons given by responders include long-term investments (28%), curiosity (22%), short-term speculation (21%), and others.

Meanwhile, separate research by personal finance portal DollarGeek dwells into 2022's most-searched cryptocurrencies worldwide, thus presenting a rough outlook on what retail players may invest in heading into 2023.

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Bitcoin dips below $16.7K as US GDP meets fresh BTC price 'death cross'

Bitcoin (BTC) fell at the Dec. 22 Wall Street open as United States equities reversed previous gains.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin risks new and unseen "death cross

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to intraday lows of $16,650 on Bitstamp.

The pair remained a conspicuous stocks copycat as the S&P 500 opened down 1.6% and the Nasdaq Composite Index traded down 1.8% at the time of writing.

The weakness appeared to be a reaction to stronger-than-expected U.S. gross domestic product (GDP) growth in Q3, data for which was released prior to the open.

Despite notionally a sign of recovery, concerns focused on the Federal Reserve continuing its restrictive economic policy on the assumption that the economy would be able to withstand the measures.

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5 cryptocurrencies to keep an eye on in 2023

It has been a tumultuous year for the crypto investors who have witnessed the total crypto market capitalization tumble from about $2.2 trillion at the beginning of 2022 to about $850 billion in December. The sharp erosion in valuation was caused due to several high-profile bankruptcies in 2022.

The entire Terra ecosystem imploded with the collapse of its LUNA token and TerraUSD (UST) stablecoin. The failure of Three Arrows Capital followed this black swan event, and the final blow came as FTX underwent a bank run and imploded. These back-to-back events triggered a liquidity and credit crunch and appear to have caused the most damage to the crypto industry.

A prolonged bear market tends to test investors’ patience, but it offers one of the best opportunities to buy fundamentally sound cryptocurrencies at lower levels. Smart investors who can go against the herd and invest during periods of panic tend to benefit the most when the trend eventually turns.

Crypto market data daily view. Source: Coin360

While a bear market is a great time to build a portfolio, traders tend to make the mistake of buying the coins that have fallen the most in the hope that they will recover to their previous glory. Most times that does not happen because every bull market has a new set of leaders. Generally, the ones that are resilient during the fall or recover quickly from the bottom tend to lead on the way up.

Let’s look at five cryptocurrencies that are showing promise for 2023.

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Yat Siu’s Big Ideas: We’re already living in the Metaverse

Magazine: Animoca was a successful mobile gaming company, with 10 million downloads and various apps in the top 10 on Apple’s App Store. Then you were suddenly thrown off the store in 2012. How did that change your views on Big Tech?

Yat Siu, Animoca co-founder:The fact that platforms could become as powerful as they became — the App Store, Google Play, Facebook, you name it — caught many of us by surprise. Open source had become the predominant form in which code was written, and it was kind of a wake-up call when Apple basically just decided to push the button and get rid of us.

We didn’t fully know the exact reasons, but there was no discussion, negotiation or process. Hundreds of people were potentially out of work, and millions of customers lost access to the apps they loved because of the decision of some person or some small group of people who can never be held accountable. And that, to us, was basically a shock. It’s not that we saw blockchain and decentralization as the solution back then — it’s just that we knew there was a problem.

Deplatforming users with no explanation seems very authoritarian, like having rulers but not courts and no solid laws.

Pretty Pet Store was one of the games deplatformed. Source: Animoca

Exactly. Blockchain is not only a technological solution but also, in many ways, a political-socioeconomic movement. That’s when people get into it. They don’t get into it because “Oh, look, it’s a decentralized ledger. I can have copies of everything!” No, they get into it because it means freedom. It means a kind of digital sovereignty they yearn for because they lost it during the transition to the digital world.

Animoca’s Pretty Pet Store mobile game was thrown off the App Store in 2012
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Bitcoin low volume sparks BTC price warning as metric hits 'value zone'

Bitcoin (BTC) price action may be “unsustainably high,” as one metric hits its highest levels in seven months.

Data from on-chain analytics firm Glassnode confirms that on Dec. 21, Bitcoin’s network value to transaction (NVT) signal reached levels not seen since April.

Bitcoin activity may not support $17,000 BTC price

Created by statistician Willy Woo, NVT essentially measures the ratio between on-chain activity and the price of Bitcoin.

NVT signal modifies its readings by using a 90-day moving average of daily transaction volume instead of raw data, something Glassnode says “improves” NVT and allows it “to better function as a leading indicator.”

On Dec. 21, the NVT signal hit 18.58, a level that last appeared as Bitcoin declined in the final days of April. At the time, BTC/USD traded at just over $40,000.

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A beginner's guide to NBA Top Shot NFTs

NBA Top Shot is a nonfungible token (NFT) marketplace that enables basketball fans to buy, sell and trade NBA-themed digital collectibles.

These collectibles are "Moments" — NFTs of NBA video clips and digital art — available per their degree of rarity. In other words, users can trade NFTs that feature anything from a winning three-pointe from Luka Dončić to a dunk from Lebron James, depending on their availability.

A NBA Top Shot Moment listing example. Source: Official Website

The concept is akin to traditional sports collectible where fans attempt to acquire the rarest of items associated with teams, with an aim to either collect or sell it later at a higher price. Except, in the case of NFTs, these collectibles are digital — unique cryptographic tokens that exist on a blockchain and theoretically cannot be replicated.

How does NBA Top Shot work?

NBA Top Shot is officially licensed by the NBA, the NBA Players Association, and Dapper Labs. The marketplace runs on the FLOW blockchain, which Dapper Labs built as a developer-friendly ledger to support "the next generation of games, apps, and digital assets."

As explained above, the NBA Top Shot platform functions like trading cards. It starts with the NBA licensing its reels and digital art to Dapper Labs. In turn, Dapper Labs uses the footage to create Moments as NFTs.

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Bitcoin rebound to $18.4K? BTC price derivatives show strength at key support zone

Bitcoin (BTC) price lost 11.3% between Dec. 14 and Dec. 18 after briefly testing the $18,300 resistance.

The move followed a seven-day correction of 8% in the S&P 500 futures after United States Federal Reserve Chair Jerome Powell issued hawkish statements after raising the interest rate on Dec. 14.

Bitcoin price retreats to channel support

Macroeconomic trends have been the main driver of recent movements. For instance, the latest bounce from the five-week-long ascending channel support at $16,400 has been attributed to the Central Bank of Japan’s efforts to contain inflation.

Bitcoin 12-hour price index, USD. Source: TradingView

The Bank of Japan increased the limit on government bond yields on Dec. 20, which are now trading at levels unseen since 2015.

However, not everything has been positive for Bitcoin, as miners have struggled with the hash rate nearing an all-time high and increased energy costs. For example, on Dec. 20, Bitcoin miner Greenidge reached an agreement with its creditor to restructure $74 million worth of debt — although the deal requires the miner to sell nearly 50% of it equipment.


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Bitcoin price fails to retake $17K with market ‘not prepared’ for dip

Bitcoin (BTC) divided traders yet again on Dec. 21 as sideways BTC price action split opinion on the future.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$17,500 becomes popular BTC price target

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it acted within a tight range just below $17,000.

A single brief spike above the $17,000 mark failed to last, the pair returning to familiar territory from the past week.

For popular traders, there was a lack of consensus, with some calling for an eventual breakout to the upside and others demanding a rapid fall toward $10,000.

“I’d want it to hold $16.7K in order to see continuation on Bitcoin,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on Dec. 20:

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Ethereum bounces above $1.2K, but derivatives metrics show traders fear a collapse

Ether (ETH) gained 5.6% on Dec. 20 after testing the $1,150 support the previous day. Still, a bearish trend prevails, forming a three-week-long descending channel, a price action attributed to expectations of further U.S. Federal Reserve interest rate hikes.

Ether/USD price index, 12-hour. Source: TradingView

Jim Bianco, head of institutional research firm Bianco Research, said on Dec. 20 that the Fed will keep the economy tightening in 2023. Later that day, Japan’s central bank increased interest rates to fight inflation, far later than its counterparties. The unexpected move made analysts more bearish toward risk assets, including cryptocurrencies.

Ethereum might have caught some tailwind after the global payment processor Visa proposed a solution to allow automatic funding from Ethereum wallets. Auto-payments for recurring bills aren’t possible for self-custodial wallets so Visa would rely on smart contracts, known as “account abstraction.” Curiously, the concept emerged in 2015 with Vitalik Buterin.

The most pressing issue, however, is regulation. On Dec. 19, the U.S. House Financial Services Committee reintroduced legislation aimed at creating innovation offices within government agencies dealing with financial services. According to North Carolina Representative Patrick McHenry, companies could apply for an “enforceable compliance agreement” with the offices at agencies like the Securities and Exchange Commission and Commodity Futures Trading Commission.

Consequently, investors believe Ether could revisit sub-$1,000 prices as the DXY dollar index loses strength while the 10-year U.S. treasury yields show higher demand for protection. Trader CryptoCondom expects the next couple of months to be extremely bearish for crypto markets.

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