How much Loss Are $BTC Holders Recording?

How-much-Loss-Are-$BTC-Holders-Recording (1)
  • Following the FTX issue, $BTC values dropped to 15K during the day of the crisis.
  • Higher UTXO levels often indicate market peaks.
  • 50% of Bitcoin owners were losing money by October.

According to a Cryptoquant post, $BTC prices fell to 15K during the day following the FTX crisis. Until then, ‘UTXOs in Profit’ was the lowest since Q4 in 2020. The metrics make use of the “Realized Price – UTXO Age Bands” indicator. This also applies to traders who hold positions for more than a day but less than a year. 

Notably, If the price now is more than the price at the time of creation, the UTXO is in profit. A UTXO, on the other hand, suffers a loss if the market price is less than when it was created.

The percentage of UTXOs that are now profitable is highlighted by the UTXOs in Profit as a Percentage. Higher levels often indicate market peaks, while lower values generally indicate market bottoms.

Concretely, Investors that hold investments for one day to 24 months continue to lose money, with losses ranging from -9.2% to as high as 61.2%. This applies once short-term buyers who bought at low prices are taken out of the equation.

Additionally, from a trading point of view, most of the volumes under pressure are short-term investors bought within 0 days to 3 months. Conversely, there is no significant change in volumes held for more than 6 months to 10 years. 

According to an analyst at the cryptocurrency analytics portal CryptoQuant, in October, 50% of Bitcoin owners were losing money. This suggested that the market could be approaching its bottom.

According to the expert’s analysis of Bitcoin’s accumulation patterns during the March 2020 crisis, a “decent accumulation range” for losses was between 40% and 50%. Between 50% and 60% was really much better over the long term according to him. 

The higher the loss percentage, the closer we are to the bottom. Buying small amounts of BTC between 50% and 60% will be incredibly profitable in the long run.

eth_whalehunter

Bitcoin is currently trading at $17,336.02 with a trading volume of $73,727,803,259. The topmost cryptocurrency has a market capitalization of $333,251,221,690 according to Coinmarketcap data.

Tags:
disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer