Bitcoin’s 24-hour bloodbath has reduced the number of its investors in profit. According to data from blockchain analytics platform IntoTheBlock, the percentage of BTC holders in the green has crashed from 93% in late July to 75% at the time of writing.
The significant decline in BTC profitable holders comes as the leading cryptocurrency crashed below $50,000 for the first time since February this year.
A Decline in Profitable Bitcoin Addresses
The last time the percentage of bitcoin-holding addresses was at this level was in January when the value of the crypto asset formed a local bottom of around $39,000. This was shortly after the United States spot Bitcoin exchange-traded funds went live, eventually triggering an uptrend that saw the cryptocurrency surge to $73,000.
About a week ago, when BTC hovered around $67,000, roughly 93% of bitcoin holders were in the money. The week before that, data from IntoTheBlock showed that the percentage of bitcoin addresses in the money remained above 90%. In fact, BTC investors rallied to this level of profit repeatedly in the past few months, an occurrence analysts believed reinforced the belief that the market is still in a bull cycle.
Despite recording a few positive days at the beginning of last week, bitcoin has fallen from a multi-week peak of $70,000 to $50,000 in 168 hours. The asset briefly touched $49,513 today before recovering slightly to the $53,000 level at the time of writing.
If bitcoin plummets below its current level, then the percentage of holders in profit is bound to take another hit. Regardless, markets are expected to rally soon as analysts believe the bull phase is far from over, so the number of addresses in the money could experience an uptick in the coming weeks.
Bitcoin Price Outlook
Bitcoin’s current price trajectory has given rise to speculation from market participants. CryptoPotato said possible reasons behind the downturn include funds flowing out of exchange-traded funds, the uncertainty around the fiscal policy of the U.S. Federal Reserve, and the weak U.S. economy.
Crypto derivatives trading platform BitMEX’s co-founder and former CEO Arthur Hayes suspects “somebody big” is dumping all their assets because they “got smoked.”
Nevertheless, CryptoQuant analysts have warned that crypto investors may experience more negative profit margins in the coming days because BTC faces the risk of plunging to $40,000.
The post Percentage of Bitcoin Holders in Profit Plunge Following Dip to $50k: ITB appeared first on CryptoPotato.