$55 Billion Drained From Crypto Market in August

In August, the price of Bit­coin (BTC) decreased by over 10%, the largest month­ly decline since Novem­ber 2022. Along with that, over $55 bil­lion worth of cap­i­tal was drained out of the mar­ket, accord­ing to reports.

August was a high­ly volatile month for the cryp­to mar­ket, as Bit­coin fell from the highs of near­ly $30,000 to $25,200. Main­ly, the volatil­i­ty dur­ing August was news-driven.

Capital Outflows Worth $55 Billion

Accord­ing to a Bitfinex report, rough­ly $55 bil­lion was with­drawn from the mar­ket in August across Bit­coin, Ethereum (ETH), and five major sta­ble­coins. The cryp­to exchange used the Aggre­gate Real­ized Val­ue met­ric to derive the result. 

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Bitfinex explained the metric:

“It analy­ses the real­ized cap­i­tal of BTC and ETH, with the com­bined sup­ply from the top five sta­ble­coins: USDT, USDC, BUSD, DAI, and TUSD.”

Bitcoin Miners Contributed Heavily to Selling Pressure

While the sup­ply of Bit­coin in the long-term hold­ers’ wal­let is near­ly at its all-time highs, the min­ers have been sell­ing. The report men­tioned that Bit­coin min­ers are the only long-term cohorts exit­ing their on-chain positions. 

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Accord­ing to the cryp­to exchange’s esti­mates, Bitcoin’s cost of pro­duc­tion is near­ly $24,287 per BTC. Bitfinex believes that the min­ers have been sell­ing because the pro­duc­tion cost is near­ly equal to the mar­ket price of Bitcoin.

More­over, the data from Glassnode shows that the Bit­coin bal­ance in the min­er wal­let has plum­met­ed sharply since Aug. 25.

Last­ly, the report men­tions that the cryp­to mar­ket is expe­ri­enc­ing event-based volatil­i­ty. It takes the exam­ple of Bitcoin’s crash to $25,200 on Aug. 17, and Grayscale’s vic­to­ry against the Secu­ri­ties and Exchange Com­mis­sion (SEC) on Aug. 29, which caused an 8% pump.

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