For the first time since the epidemic of the Corona virus around the world and the collapse of the financial markets in March 2020 (March 2019), more than half of the Bitcoin addresses are in a loss situation. Previous downward price cycles have also ended in several cases when more than 50% of Bitcoin network addresses were in a loss state.
To Report CoinDesk, according to the data of IntoTheBlock analytical platform, currently 51% or 24.56 million addresses of the total 47.85 million Bitcoin holder addresses in the network are in a loss state; It means that the current prices are lower than their average purchase price. Another 45% are in profit and the rest are almost in a breakeven situation.
Lucas Outumuro, an analyst at Into de Block, also believes that Bitcoin’s downward movement has already reached its peak. He says that previous bearish price cycles ended when more than 50% of Bitcoin holder addresses were in a loss state.
For example, in January 2019 (Dec 2017), the share of addresses in losses reached 55%, and Bitcoin experienced its price floor at $3,200 at the same time, and three months later began a new upward movement. In the depths of the bear market of 2015, the share of addresses in the loss of the Bitcoin network had reached 62%.
Of course, it is also important to note that there is no guarantee that historical trends will be repeated in the future, and the recent fall of the FTX exchange can continue to put more downward pressure on the market.