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Bitcoin Capitulation Deepens As aSOPR Metric Plunges To Dec 2018 Lows

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Bitcoin Capitulation Deepens As aSOPR Metric Plunges To Dec 2018 Lows

On-chain data shows the Bitcoin aSOPR metric has dropped to lows not seen since December 2018, suggesting that holder capitulation is deepening.

Bitcoin aSOPR Plummets To Lows Not Observed Since Almost 4 Years Ago

As pointed out by an analyst in a CryptoQuant post,  the current capitulation is deeper than during both the 2015 bear and the COVID crash.

The “Spent Output Profit Ratio” (or the SOPR in short) is an indicator that tells us whether Bitcoin investors are selling at a loss or at a profit right now.

When the value of this metric is greater than 1, it means the overall market is realizing some amount of profit currently.

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On the other hand, the indicator having values below the threshold implies the average holder is selling at a loss at the moment.

Naturally, the SOPR being exactly equal to 1 suggests the investors as a whole are just breaking even right now.

A modified version of this metric is the “Adjusted SOPR” (aSOPR), which doesn’t take into account any selling of coins that was done within 1 hour of the purchase of said coins. By doing so, the indicator filters any noise from the data that wouldn’t have had any significant consequences on the market.

Now, here is a chart that shows the trend in the Bitcoin aSOPR since the year 2014:

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The value of the metric seems to have seen a heavy drawdown in recent days | Source: CryptoQuant

As you can see in the above graph, the Bitcoin aSOPR has observed a rapid downwards trajectory below the 1-level recently. This means that BTC investors have been selling their coins at huge losses.

The indicator’s value is now the lowest it has been since the December of 2018, when the bear market of the previous cycle saw its bottom.

These current levels of the metric are also lower than they were during both the 2015 bear market bottom as well as the COVID black swan crash.

Plummets in the aSOPR like the one now indicate that there is widespread capitulation going in the Bitcoin market. Such deep loss realizations have historically lead to the formation of lows in the price as they result in a shift in coins from weak hands to strong hands.

Since the indicator is currently at historical lows, it’s possible the market is approaching a bottom for this cycle. However, it’s worth noting that the 2018 bottom saw even deeper values than now, so it’s uncertain whether the current cycle will also see similar lows or not, before the true bottom is in.

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BTC Price

At the time of writing, Bitcoin’s price floats around $16.5k, up 1% in the last week.

BTC has shown strong uptrend in the last two days | Source: BTCUSD on TradingView
Featured image from 愚木混株 cdd20 on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Family Says They Are Moving $1M In Crypto To Decentralized Exchanges After FTX Collapse

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Bitcoin Family Says They Are Moving $1M In Crypto To Decentralized Exchanges After FTX Collapse

In October 2017, Netherlands native Didi Taihuttu and his family sold all their valuable belongings and their house for bitcoin. The decision paid off and the Taihuttu family has traveled all around the world and recently moved to the island of Phuket. On Nov. 30, the 44-year-old Didi Taihuttu told CNBC that after storing crypto in cold storage, centralized exchange (cex) platforms, and decentralized exchange (dex) protocols for years, the Dutch family has decided to proactively transfer $1 million in digital assets to dex protocols in order to have more control via self-custody.

Didi Taihuttu and Family Are Taking Proactive Steps to Self-Custody Their Crypto Assets

Just over five years ago, Bitcoin.com News reported on the Taihuttu family after they decided to sell their home, children’s toys, and vehicles so they can accumulate bitcoin (BTC). On Wednesday, the patriarch of the family, Didi Taihuttu, spoke with CNBC and explained that the family is moving $1 million in crypto assets to dex protocols following the FTX collapse.

The Taihuttu family in November 2022. Didi explained to CNBC that the Taihuttu family currently keeps 73% of its cryptocurrencies in cold storage.

Taihuttu detailed that before the decision to proactively move the funds from cex platforms to dex protocols, the family stored a fraction of funds on trading platforms like Bybit and Kraken. “If you never send your bitcoin to an exchange,” Taihuttu said, “your bitcoin stays in your own wallet, meaning you have complete custody of your coins. [But] you connect to a dex, and by making that connection, you trade out of your own wallet.”

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Taihuttu continued:

If the dex collapses, it doesn’t matter, because the bitcoins are always in your own wallet.

Taihuttu explained that he learned his lesson in 2017 when the cex platform Cryptopia was hacked and he lost four bitcoins. “From that moment, I was always searching for alternatives,” Taihuttu said. As far as FTX is concerned, Taihuttu insisted that “too many influencers were paid too much money to promote that one.” The family would not disclose how much they owned in crypto assets but they did say roughly $1 million worth of BTC, ETH, LTC, DOT, and other tokens would be moved to decentralized exchanges.

Taihuttu says the current drama associated with FTX is similar to what happens every bitcoin cycle. “We seem to get that lesson every bitcoin cycle — “It was Mt Gox, it was banning bitcoin in China, it was banning mining. There’s drama every time,” he added. Taihuttu wholeheartedly believes BTC is holding steady, and simply doing what the leading crypto asset always does.

“Looking at the current situation: We have a huge war going on, we have a huge financial crisis, we have FTX, we have Celsius, we have a lot of bear market signals,” Taihuttu told CNBC. “I think that bitcoin is really holding strong at $16,800. For me, bitcoin is still doing perfect and still doing what it always does: Being a decentralized currency that is usable by all people all over the world,” Taihuttu concluded during his interview on Wednesday.

Tags in this story

Bitcoin, Bitcoin (BTC), Blockchain, BTC, Cold Storage, cold storage solutions, crypto cold storage, Cryptocurrencies, cryptocurrency cold storage, Didi Taihuttu, digital nomad, dogecoin, ETH, Ethereum, Ethereum (ETH), Finance, hot wallet, hot wallets, Investing, litecoin, litecoin (LTC), Netherlands, Nomads, Perpetual Traveler, six hardware wallets, Taihuttu Family

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What do you think about the Taihuttu family’s progress and the family moving $1 million from cex applications to dex protocols? Let us know your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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CryptoSlate Daily wMarket Update – Nov. 30: Bitcoin breaks $17K resistance as markets expect slower rate hikes

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CryptoSlate Daily wMarket Update – Nov. 30: Bitcoin breaks $17K resistance as markets expect slower rate hikes

CryptoSlate Daily wMarket Update – Nov. 30: Bitcoin breaks $17K resistance as markets expect slower rate hikes Oluwapelumi Adejumo · 11 hours ago · 3 min read

The wMarket Update condenses the most important price movements in the crypto markets over the reporting period, published 07:45 ET on weekdays.

3 min read

Updated: December 1, 2022 at 12:49 pm

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Cover art/illustration via CryptoSlate

The cryptocurrency market cap saw net inflows of $8.12 billion over the last 24 hours and currently stands at $861.02 billion — up 0.94% from $852.9 billion over the reporting period.

Bitcoin and Ethereum’s market cap increased by 1.43% and 1.47% to $329.02 billion and $157.28 billion, respectively.

Polygon led the gains among the top 10 cryptocurrencies, up 5,86% over the reporting period. Meanwhile, BTC and ETH gained 1.29% and 1.22%, respectively.

Source: CryptoSlate

Over the reporting period, USD Coin’s (USDC) market cap slightly decreased to $43.25 billion. Meanwhile, Tether’s (USDT) and BinanceUSD’s (BUSD) market cap slightly increased to $65.36 billion and $22.21 billion, respectively.

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Bitcoin

Bitcoin gained 1.29% to trade at $17,099 as of 07:00 ET. Its market dominance remained flat at  38.1%.

During the last 24 hours, Bitcoin broke above $17,000 around 15:00 UTC. The flagship digital asset has continued to trade above the resistance level since then.

BTC 24-Hour Price Performance (Source: Tradingview)

Ethereum

ETH posted 1.22% gains over the last 24 hours to trade at $1,282 as of 07:00 ET. As a result, its market dominance increased to 18.3% from 18.2% over the reporting period.

Like BTC, ETH was able to maintain its price above the $1,200 mark during the last 24 hours after breaking the zone around 15:00 UTC.

ETH 24-Hour Price Performance (Source: Tradingview)

Top 5 Gainers

Mask Network

MASK is the day’s biggest gainer, growing by 24.66% over the last 24 hours to $4.13 as of press time. The token has grown by over 54% in the last seven days. Its market cap stood at $281.69 million.

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GMX

GMX gained 12.74% over the reporting period to trade at $50.53 as of press time. Its market cap stood at $403.83 million

Optimism

OP increased by 10.07% in the last 24 hours to $1.048. The layer2 blockchain token has risen by 12% over the last seven days. Its market cap stood at $246.62 million.

EthereumPoW

ETHW grew 8.93% over the reporting period to $0.036. The Proof-of-Work token has lost 40% of its value over the last 30 days. Its market cap stood at $388.73 million.

Zcash

ZEC saw a 6.67% gain in the last 24 hours to $44.95. It was unclear why the privacy-focused token was rising. Its market cap stood at $711.19 million.

Top 5 Losers

GensoKishi Metaverse

MV is the day’s biggest loser, shedding 11.7% of its value to trade at $0.19 as of press time. The metaverse-related token has been on a downward trend in the past 30 days, losing over 11% of its value. Its market cap stood at $327.98 million.

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Kaspa

KAS is among the top losers again, as it lost 7.11% in the last 24 hours to trade at $0.00810 as of press time. Its market cap stood at $119.86 million.

MobileCoin

MOB plunged by 7.47% to $1.30 as of press time. It was unclear why the token was falling. Its market cap stood at $96.94 million.

HI

HI is among the day’s biggest losers, losing 4.58% of its value to trade at $0.029 as of press time. Its market cap stood at $84.56 million.

Icon

ICX shed all the gains it made on Nov. 29, crashing by 4.56% to $0.19 as of press time. Its market cap stood at $182.05 million.

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Analysis

November was the second worst month for Bitcoin, fourth worst for Ethereum

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November was the second worst month for Bitcoin, fourth worst for Ethereum

November was the second worst month for Bitcoin, fourth worst for Ethereum Oluwapelumi Adejumo · 11 hours ago · 2 min read

Bitcoin and Ethereum experienced one of their worst months in 2022 in the just concluded November.

2 min read

Updated: December 1, 2022 at 3:27 pm

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Cover art/illustration via CryptoSlate

November 2022  was one of the worst months for the two most popular cryptocurrencies — Bitcoin (BTC) and Ethereum (ETH).

November was Bitcoin’s second worse month in 2022

According to CryptoSlate data, Bitcoin lost roughly 18% of its value in the past 30 days — making November the second-worst month for the year and its biggest monthly loss in the last five months.

Bitcoin Monthly Revenue in % (Source: CoinGlass)

While Bitcoin’s value slightly recovered towards the end of the month, FTX’s capitulation shattered retail traders’ trust in the system. Glassnode reported that crypto investors witnessed the fourth largest capitulation on record with a 7-day realized loss of $10.16 billion

Over 50% of BTC holders are in loss after the asset’s value dropped to around $15,600 — the lowest profitability level since March 2020.

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Additionally, Bitcoin miners wiped out their 2022 balances as the volume of the asset sold surpassed the amount they accumulated during the year. Miners are under increasing sell pressure as the flagship digital asset’s value struggled below the $16,000 mark.

Bitcoin miners like Iris Energy defaulted on a $108 million debt and ceased operations at two of its facilities in November. An unnamed Bitcoin miner also defaulted on rent in Dallas and left all of its equipment behind.

#Bitcoin Shrimps (<1$BTC) have added 96.2k $BTC to their holdings since FTX collapsed, an all-time high balance increase.

This cohort now now hold over 1.21M $BTC, equivalent to 6.3% of the circulating supply.

Pro Dashboard: https://t.co/HpXwoav6wO pic.twitter.com/7U4oPAAakD

— glassnode (@glassnode) November 28, 2022

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Meanwhile, despite all of these losses and capitulation, Glassnode reported that BTC Shrimps and Crabs have aggressively accumulated since FTX collapsed, leading to an all-time high balance.

Ethereum experiences its fourth-worst month

Meanwhile, November was the fourth worst month of the year for Ethereum as it fell almost 20%.

Ethereum Monthly Revenue in % (Source: CoinGlass)

Following the collapse of FTX, ETH’s value fell to as low as $1,110 on Nov. 10 from over $1,600. The cryptocurrency has recovered slightly since to over $1,200. As of press time, ETH was down 18%  over the past 30 days.

The poor price performance appears to have spurred Ethereum whales and shrimps to accumulate. CryptoSlate’s analysis of Glassnode data shows that investors in these cohorts have been accumulating Ethereum at an aggressive rate.

Despite the late rally towards the end of the month, crypto analysts’ disposition towards the asset remains bearish. Popular crypto trader Capo of Crypto tweeted on Nov. 28 that he expects a capitulation that would send ETH price to around $600 to $700 soon.

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I have spent hundreds of hours analyzing the market to come to the conclusion that:

Capitulation is a matter of time. $BTC should reach 12ks, $ETH 600-700, altcoins should drop 40-50% and shitcoins 50%+.

I won’t post any more here until confirmation or invalidation.

Good luck!

— il Capo Of Crypto (@CryptoCapo_) November 28, 2022

Meanwhile, this is not the first time Bitcoin and ETH have had a bad November. In fact, the month has been a rough one for BTC historically. In 2018, BTC lost 37% of its value in November.

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