Recent data on the blockchain indicates that less than 1% of Bitcoin holders are currently experiencing losses after the price of the asset surged above $100,000.
Small Percentage of Bitcoin Addresses Are Underwater Despite Price Increase
In a recent update from X, market intelligence platform IntoTheBlock has delved into the distribution of profits and losses among Bitcoin users following the cryptocurrency’s recovery.
With BTC nearing its all-time high, it’s expected that the number of investors in a loss position would be minimal. The chart provided by the analytics firm shows the price ranges in which these remaining underwater addresses acquired their coins.
These ranges collectively represent the acquisition cost of approximately 380,000 addresses, which accounts for less than 1% of all Bitcoin holders despite the seemingly high number.
Understanding the cost basis levels of addresses is crucial in on-chain analysis as investors tend to make decisions based on their profit-loss status.
Prior to a retest, holders in a loss position may consider selling in fear of potential future price declines, which could lead to increased selling pressure. However, the current thin presence of addresses ahead of the asset suggests limited resistance from panic selling.
While most investors are currently in a profitable position, the risk of a mass selloff due to profit-taking increases as the market imbalance grows. Whether demand can counteract this selling pressure in the near future remains uncertain.
Bitcoin Price Update
As of now, Bitcoin is trading around $97,900, reflecting a 3% increase over the past week.
