- 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.
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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.
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