Blockchain analytics firm Glassnode says that the latest market downturn plunged millions of Bitcoin (BTC) underwater.
Glassnode says that Bitcoin’s drop from the recent top of $30,900 in mid-April sunk an additional 2.71 million Bitcoin into loss territory, about 14% of the total BTC circulating supply.
The latest market dip increased the total Bitcoin supply underwater from 3.96 million BTC to 6.67 million BTC, according to the analytics firm.
“The -14.6% move downwards from the local top of $30,900, to our current spot price of $26,400 has propelled 2.71 million BTC into an underwater position, equivalent to 14% of the circulating supply. This raises the total supply in loss across the aforementioned period from 3.96 million to 6.67 million BTC, a 68.4% increase.”
Glassnode also notices that more of the Bitcoin flowing onto crypto exchanges is at a loss based on the profit/loss ratio, which compares the number of coins sitting at a loss to those at a profit.
“When assessing the profit/loss ratio (bias) of Bitcoin deposit volume to exchanges, we note a current negative bias of 0.7, suggesting coins are flowing into exchanges at a loss.”
According to the analytics firm, short-term holders (STH) of Bitcoin, not long-term holders (LTH), are likely responsible for most of the recent inflow of BTC to exchanges.
“Breaking down the exchange inflow bias by short and long-term holders, we note that LTHs are recording a positive bias of 1.73, experiencing profitable inflows. The converse is true for STHs, recording a negative bias of 0.69, a value similar to the market-wide bias of 0.7, suggesting STHs are currently dominating exchange inflows.”
Bitcoin is trading for $26,717 at time of writing, up 0.9% during the past 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
