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More than half of all Bitcoin addresses are in the red for the first time in over two years, according to the latest data.
Figures from blockchain data firm Glassnode show that the number of BTC addresses submitted to exchanges is at its lowest level in 23 months, with some analysts suggesting that both indicators are likely to lead to large short-term selloffs. It suggests that it may indicate the end.
A series of last year’s sell-offs sent bitcoin’s price down from a record high near $69,000 last November to below $20,000.
The decline follows a similar price cycle, with Bitcoin hitting all-time highs almost every four years before suffering a major correction.
Bitcoin’s price has remained relatively stable in recent months, leading to much speculation as to whether it has hit a bottom. Earlier cycle troughs saw the address share of profits drop to around 40-45%.
Comparing the current price of Bitcoin to the price the last time it was moved between addresses, only 49.4% of addresses are profitable, suggesting further losses are possible. .
“Bitcoin is one of the fastest accelerating asset classes in history, trading at a fraction of a penny 14 years ago,” Coinjournal analyst Dan Ashmore said. , but climbed to $69,000 last year.
“It goes against this context of exorbitant profits, which shows how remarkable it is that the majority of the Bitcoin supply is currently losing money.”
The last time more than half of Bitcoin addresses lost money was in March 2020. At this time, panic over the emergence of the Covid pandemic triggered a market-wide cryptocurrency crash.
This has left some investors hopeful that the price of Bitcoin will recover, and the so-called crypto winter, when the entire cryptocurrency market fell below $1 trillion today from nearly $3 trillion last November. It may even hint at the end of the
Bitcoin’s price has risen slightly over the past few days, rising nearly 10% to its highest level since mid-September.
Fuad Fatullaev, co-founder and CEO of Web3 ecosystem WeWay, said positive price increases could be the basis for a new uptrend.
“[Bitcoin’s] Growth has been fueled by a number of fundamentals, including the vote of UK MPs to recognize bitcoin and cryptocurrencies as regulated financial instruments,” he said. Independent.
“Although it is still relatively early to call the current growth another rally, we can expect Bitcoin to move above the $20,800 level if the buying momentum is maintained by the end of the week.”
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