Share of Bitcoin Holders in Profit Drops After Crash to $50,000: ITB

Bitcoin’s 24-hour bloodbath has reduced the number of its investors in profits. According to data from blockchain analytics platform IntoTheBlock, the percentage of BTC holders in the green has fallen from 93% at the end of July to 75% at the time of writing.

The significant drop in profitable BTC holders comes as the leading cryptocurrency crashed below $50,000 for the first time since February this year.

Declining Bitcoin Profitable Addresses

The last time the percentage of bitcoin holding addresses was at this level was in January, when the value of the crypto asset formed a local fund of about $39,000. This was shortly after the United States spotted Bitcoin exchange-traded funds, which eventually led to an uptrend that saw the cryptocurrency rise to $73,000.

About a week ago, when BTC was hovering around $67,000, roughly 93% of bitcoin holders were in the money. Last week, data from IntoTheBlock showed that the percentage of bitcoin-to-money addresses remained above 90%. In fact, BTC investors repeatedly increased to this level of profits in recent months, a fact that analysts believed reinforced the belief that the market is still in a bullish cycle.

Despite posting a few positive days early last week, bitcoin has fallen from a multi-week high of $70,000 to $50,000 in 168 hours. The asset briefly touched $49,513 today before recovering slightly to the $53,000 level at the time of writing.

If bitcoin falls below its current level, then the percentage of profit holders is bound to take another hit. Regardless, markets are expected to bounce back soon as analysts believe the bullish phase is far from over, so the number of money addresses could see an increase in the coming weeks.

Bitcoin Price Outlook

The current trajectory of Bitcoin prices has given rise to speculation by market participants. CryptoPotato said possible reasons for the drop include funds flowing out of exchange-traded funds, uncertainty about the US Federal Reserve’s fiscal policy and the weak US economy.

The co-founder and former CEO of crypto derivatives trading platform BitMEX, Arthur Hayes, suspects that “someone big” is dumping all his assets because they “got smoked.”

However, CryptoQuant analysts have warned that crypto investors may experience more negative profit margins in the coming days as BTC faces the risk of falling to $40,000.

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