On-chain data shows the number of Bitcoin loss addresses has shot up following the cryptocurrency’s dive toward $87,000.
Bitcoin Market Delivered Shock As Price Plummets 7% In Past Day
Bitcoin had already been following a bearish trajectory during this month, but it appears the asset’s decline has seen an acceleration in the last 24 hours as its price has dropped by more than 7%.
Below is a chart that shows how the coin’s crash has looked:
From the graph, it’s visible that BTC briefly dipped under the $87,000 mark during the plummet, but it would appear it has since found a small rebound back to $89,000. Bitcoin hasn’t been alone in this bearish price action, as the rest of the digital asset sector has taken a dive inside this window as well. Most of the altcoins have also in fact printed worse returns than BTC.
Severe liquidations have occurred over at the derivatives side of the sector as a result of this sector-wide drawdown, according to data from CoinGlass. In total, liquidations have reached a whopping $1.5 billion in the last 24 hours.
Naturally, a consequence of the crash was that BTC’s profit-loss distribution saw a notable change.
More Than 12% Of BTC Addresses Are Now Underwater
In a new post on X, the market intelligence platform IntoTheBlock has discussed about the latest trend in its Historical In/Out of the Money indicator. This metric basically tells us about the percentage breakdown of BTC addresses between profit, loss, and break-even.
The indicator works by going through the transaction history of each address on the network to see what average price it received its coins at. If this cost basis is greater than the current price, then the metric puts the address into the loss category, which the analytics firm terms as ‘out of the money.’
Similarly, holders of the opposite type fall into the profit category, or ‘in the money.’ The addresses that have an average acquisition price equal to the BTC spot value can be assumed to be just breaking even on their investment, or ‘at the money.’
Now, here is the chart for the indicator shared by IntoTheBlock, which specifically shows the trend in the Out of the Money portion of the Bitcoin userbase:
As displayed in the above graph, the metric has gone up alongside the latest crash in the BTC price, as a large amount of addresses have entered into a state of loss. In total, over 12% of the cryptocurrency’s holders are underwater now, which is the highest level since October of last year.
Featured image from Dall-E, CoinGlass.com, IntoTheBlock.com, chart from TradingView.com
Keshav Verma
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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