Less Than 1% Of Bitcoin Investors In Loss After BTC Reclaims $100,000
Less Than 1% Of Bitcoin Investors In Loss After BTC Reclaims $100,000 On-chain data shows less than 1% of all Bitcoin holders are still in loss following the surge in the asset’s price above the $100,000 level. Very Few Bitcoin Addresses Are Sitting Underwater At Current Price In a new post on X, the market intelligence platform IntoTheBlock has discussed about the profit-loss distribution of the Bitcoin userbase after the recovery run that the cryptocurrency has seen. BTC is now not too far from its all-time high, so there wouldn’t naturally be many investors left in loss. Below is the chart shared by the analytics firm that shows the price ranges inside which these few addresses still underwater bought their coins. The cost basis distribution of the BTC investors across the price ranges near the current spot value | Source: IntoTheBlock on XIn the graph, the size of the dot corresponds to the amount of BTC that the holders last purchased inside the corresponding price range. Evidently, there are only very small dots associated with the levels ahead of the current spot price. In total, these ranges contain the cost basis of approximately 380,000 addresses. This may sound like a lot, but given the sheer size of the BTC userbase, this number makes up for less than 1% of all holders of the asset. Address cost basis levels are considered important in on-chain analysis due to the fact that investors are more prone to making moves whenever their profit-loss status is about to flip. Holders who were in loss prior to the retest (that is, when the retest takes place from below) might respond by selling, as they could fear the price would go down again in the future, making this potentially their only opportunity in the near term to get their money back. This selling can visibly affect Bitcoin if the level being retested contains the acquisition level of a large amount of investors. At present, though, the ranges ahead of the asset are clearly quite thin with addresses, meaning they should likely offer little in the way of resistance from such panic sellers. This doesn’t necessarily mean crossing these levels would be a walk in the park for the coin, however, as when the profit-loss balance in the market shifts overwhelmingly towards profits, something else starts posing a significant risk: selling with the motive of profit-taking. The more lopsided the market gets, the higher is the probability of a mass selloff happening. With almost all Bitcoin investors sitting in gains right now, some of them are bound to exit their positions. It only remains to be seen whether demand would be strong enough to offset this selling pressure or not. BTC Price At the time of writing, Bitcoin is trading around $97,900, up 3% over the past week. The trend in the price of the coin over the last few months | Source: BTCUSDT on TradingViewFeatured image from Dall-E, IntoTheBlock.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.