40% of Bitcoin ($BTC) Investors Are Now Sitting on Unrealized Losses

Read Time:1 Minute

-The price of Bitcoin recently plunged to $31,000 after a series of withdrawals on the Anchor Protocol sled to the largest decentralized stablecoin, UST, losing its peg.
-In response to the UST crisis, the Luna Foundation Guard deployed over 28,200 BTC to defend the USTs peg.
-According to on-chain analytics firm Glassnode, network profitability defined as a drop in the percentage of addresses, entities and/or supply in profit, when BTC was trading at around $33,800 between 60% and 62% of BTC investors were in a state of profit, meaning around 40% were sitting on unrealized losses.
-Glassnode added that these levels are coincident with profitability seen in the late-2018, and late 2019-20 bear markets. Per the firm, these levels occurred prior to the final capitulation flush out event, which means that further downside remains a risk.
-CNBC reports that in the last month alone, 15.5% of all BTC wallets fell into an unrealized loss at a time in which the flagship cryptocurrencys correlation to equities has been rising.
-Glasnodes analysts noted an influx of urgent transactions entered Bitcoins mempools amid the sell-off, as investors were paying higher fees while seeking to de-risk, sell, or re-collateralise their margin positions.
-Per the report, 15.2% of on-chain transaction fees were associated with exchange deposit transactions, a figure higher than the one seen during the height of the 2017 bull-run and the May 2021 sell-off.
-As reported, Bank of Americas analysts expect the correlation between BTC and equities to remain in the near future.
-Moreover, while bitcoin has often been compared to gold, the correlation between the flagship cryptocurrency and the precious metal has dropped to near zero since June 2021, and has kept trending down.

willy woo bitcoin exit strategy 40% of Bitcoin ($BTC) Investors Are Now Sitting on Unrealized Losses
40% of Bitcoin ($BTC) Investors Are Now Sitting on Unrealized Losses 2

Leave a Reply