The majority of bitcoin investors who bought the top around $69,000 last year have parted away with their BTC at a loss, a new report by Glassnode confirms.
Bitcoin Bottom In?
It seems that bitcoin might be past its bottom or nearing it as a new report indicates that most BTC investors who bought at an all-time high have sold their holdings at a loss due to the prolonged bear market.
It should be recalled that bitcoin reached its ATH of $69,000 in November last year and has since been on a long downtrend, currently trading at just above $43,500.
Glassnode, a leading on-chain analytics provider stated in its latest report that more than 50 percent of the coins once bought for about $60,000 have been sold in the range of $35,000-38,000.
At the same time, the report shows that individuals with strong conviction in the cryptocurrency continue to hold their BTC despite the uncertain geopolitical climate induced by the Russia-Ukraine conflict.
Specifically, the Glassnode report compared Bitcoin’s UTXO Realized Price Distribution (URPD) on important dates from 2021 to today. For the uninitiated, URPD tracks the prices at which existing bitcoin last moved on-chain. The URPD data can be beneficial to determine how many investors are in profit and otherwise.
The report states in part:
“Starting with the May-July period, the coin distribution was skewed to be very top-heavy, with a large proportion of the coin supply held between $54k and $60k. Whilst this showed a degree of demand at higher prices, it also made for a fragile market with many ‘top buyers’ who would be sensitive to any major price correction.”
The aforementioned was followed by a distinct market capitulation where both spot and derivatives markets were flushed out of existence. At the same time, the bitcoin on-chain activity nosedived, indicating the beginning of the current bear market as we see it.
Similarly, in regard of buyers with strong conviction, the report says:
“During this 2.5 month long period of consolidation, a great deal of supply was transferred by top buyers into exchanges for sale. This supply was then gradually soaked up by higher conviction buyers, with the cost basis of these coins becoming more heavily weighted between in the $29k to $40k price range.”
In essence, this period was marked was by a large-scale transfer of BTC from weak hands to strong hands.
Bitcoin Whale Address Continue to Rise
While bitcoin’s price action might have forced the retail investors to part ways with their BTC, whales continue to amass bitcoin according to on-chain metrics.
As previously reported by crypto.news, in February, the number of bitcoin whale addresses climbed to the highest level in a month, indicating the whales are unfazed by macro uncertainties.
Similarly, the number of non-zero bitcoin addresses reached a new ATH of more than 40 million in late February, likely due to the fears of state-sanctioned seizure of personal wealth.
Most recently, crypto.news reported that bitcoin exchange reserves have slumped to a 3.5 year low, indicating that investors are not looking to sell their BTC anytime soon.
Sourced from crypto.news.
Written by Aisshwarya Tiwari on 2022-03-02 11:00:00.
