The majority of addresses that hold bitcoin (BTC), the largest cryptocurrency, are in loss currently. This is the first time that has taken place since the beginning of the crisis that was caused by the coronavirus in March of 2020.
IntoTheBlock, a blockchain analytics startup, reports that just over 51%, or 24.6 million addresses, of the total 47.9 million are losing money on their investments. Only about 45% of the contracts are “in the money,” meaning they have unrealized gains, while the other half are about at break-even.
According to the standards outlined by IntoTheBlock, out-of-the-money addresses are those who acquired coins at an average price that was higher than the current value of one bitcoin, which is $16,067. Moreover, Lucas Outumuro, head of research at IntoTheBlock, says that the bearish momentum seems to be too strong.
A Timeline Of Bitcoin Losses
The majority of locations were deemed to be “out of the money” when earlier bear markets came to a conclusion. In January 2019, the percentage of residences that were considered to be “out of the money” stood at 55%. Around the same period, the price of bitcoin hit a low of approximately $3,200 and then began to recover roughly three months later.
During the worst of the bear market in 2015, the proportion of addresses that were not profitable grew to 62% of all addresses. The facts from the past are not, however, a guarantee of how the future will turn out, and the aftermath from the failure of the cryptocurrency exchange FTX may bring about additional market misery.
Many skeptics in the cryptosphere are voicing as the ongoing bear market grows more intense in the wake of FTX’s demise. SEC chairman Gary Gensler recently weighed in, saying that this is just the latest example of a growing pattern involving digital assets.