In other news, El Salvador's President Nayib Bukele has broken his silence — assuring BTC investors who are nervous about the current state of the market.
Bitcoin is dusting itself off after a wild weekend that saw prices plunge to lows of $17,708.62.
The sudden slide below $20,000 on Saturday morning marked a dark new phase of the bear market — and thin trading volumes meant there was little resistance as BTC plumbed depths not seen since November 2021.
But Sunday and Monday marked a remarkable turnaround for the world's biggest cryptocurrency, with BTC securing double-digit gains and hitting highs of $20,913.32 at one point.
The swift return above $20,000 is a small victory for the bulls given the psychological significance of this threshold, but further uncertainty lies ahead because of a close correlation with the stock market.
Ether has also rebounded healthily after touching lows of $896.11 over the weekend — and at the time of writing, it's trading at $1,134.55.
New data from Glassnode helps explore how painful the weekend really was for crypto investors — with the firm tweeting:
"The last three consecutive days have been the largest USD denominated realized loss in Bitcoin history. Over $7.325 billion in BTC losses have been locked in by investors spending coins that were accumulated at higher prices."
Glassnode said the conviction of BTC investors "is seriously being put to the test" right now — and when prices slid to $17,700, just 49% of BTC's supply was in profit. Analysts explained:
"Historical bear markets have bottomed and consolidated with between 40% and 50% of supply in profit."
Bukele Speaks Out
One person who hasn't been all that vocal about Bitcoin's movements in recent weeks is Nayib Bukele.
El Salvador's president has attracted attention for regularly buying BTC's dips, but estimates suggest that his country's investment has lost over $50 million since September 2021.
Bukele broke his silence on Sunday, and sought to adopt a reassuring tone for followers who were nervous about the state of the market.
"I see that some people are worried or anxious about the #Bitcoin market price. My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market. Patience is the key."