Analysis: On-chain data reveals genuine panic in BTC, long-term holders "surrender" but panic selling accelerates clearing

BlockBeats news, November 9th - On-chain analyst Murphy released an analysis, dissecting the true extent of panic in the Bitcoin market through on-chain data. He pointed out that on November 5th, the realized losses from long-term holders transferring to trading platforms (LTH-RLTE) reached $139 million, a scale only surpassed during the most panicked periods in February and June of this year within the past year, indicating severe market anxiety where even long-term holders are beginning to "surrender" and flee. However, on the flip side, this often signifies an acceleration in the clearing out of panic selling. In contrast, short-term holders are not "fleeing in panic" as they have already completed most of their turnover earlier in the year, with their current average cost around $75,000 to $76,000, placing the current price at break-even, leading most to hold and observe.

Overall, the absolute value of the average on-chain realized losses over the past 24 hours remains high. Impacted by the dual blows of the Binance attack at the end of October and the US stock market crash on November 5th, market confidence has been shaken, directly triggering panic among long-term holders. Fortunately, the overall scale of realized losses has not continued to expand. Murphy believes investors are currently exhibiting a psychological state of "reluctant but compelled to sell at a loss," and emotional recovery awaits a trigger, namely when people gradually realize that the actual situation is not as bad as expected.