Bitcoin Investors See Profit Margins Shrinking
Bitcoin’s recent downturn has resulted in a significant decrease in the number of investors seeing profitable returns. According to data from blockchain analytics platform IntoTheBlock, the percentage of BTC holders in profit has declined from 93% in late July to 75% currently.
This drop in profitable Bitcoin holders coincides with the cryptocurrency falling below $50,000 for the first time since earlier this year.
A Decrease in Profitable Bitcoin Addresses
The last time the percentage of addresses holding Bitcoin was at this level was back in January when the value of the digital asset hit a local low of around $39,000. This decline followed the launch of US spot Bitcoin exchange-traded funds, leading to a surge that pushed the price up to $73,000.
- About a week ago, with Bitcoin trading around $67,000, roughly 93% of holders were in profit.
- The previous week, data from IntoTheBlock indicated that over 90% of Bitcoin addresses were profitable.
Despite experiencing a few positive days at the start of last week, Bitcoin has dropped from a several-week high of $70,000 to $50,000 within a week. The price briefly hit $49,513 today before bouncing back to around $53,000.
If Bitcoin continues to decline, the percentage of holders seeing profit will likely decrease further. However, market analysts anticipate a recovery soon, suggesting that the bull market is still in play, which could result in more addresses being in profit in the upcoming weeks.
Bitcoin Price Prediction
Bitcoin’s recent price trend has sparked speculation among market participants. Various factors, including outflows from exchange-traded funds, uncertainties surrounding the US Federal Reserve’s fiscal policies, and the weak US economy, are thought to have contributed to the downturn.
CryptoQuant analysts have cautioned that investors could face more losses in the near future as Bitcoin’s price risk falling to $40,000. Arthur Hayes, co-founder, and former CEO of BitMEX, has also suggested that a large investor may be selling off assets after suffering significant losses.
By
By
By
By