- Bitcoin’s recent price drop resulted in increased supply loss, with 2.71 million BTC affected.
- At press time, MVRV showed an undervaluation of BTC as the price declined slightly.
After rallying to the $30,000 price range earlier this year, Bitcoin [BTC] a subsequent decline that caused part of its supply to suffer losses. A recent report by Glassnode provided detailed insights into the number of BTC affected by this price drop and the corresponding percentage of loss incurred.
Read Bitcoins [BTC] Price prediction 2023-24
Bitcoin supply at a loss increases
On April 11, the price of Bitcoin skyrocketed to the coveted $30,000 mark and remained stable for over a week. However, the value was gradually declining and was in the $26,000 range at press time. A recent chart released by Glassnode illustrates the fallout of this price drop, which caused some BTC holders to experience losses.
Source: Glassnode
The sharp -14.6% move down from the local high of $30,900 to the current price of around $26,400 has left 2.71 million BTC in an unfavorable position, which is 14% of the circulating supply is equivalent to.
This has caused the total amount of BTC lost to increase from 3.96 million to 6.67 million BTC over the period, a significant increase of 68.4%.
Bitcoin NUPL paints a more accurate picture
Net unrealized gain and loss (NUPL) measures the overall profitability of the bitcoin coin supply. Bitcoin NUPL chart analysis shows that the uptrend started above the zero line in January.
At press time, although the NUPL remained above zero, showing a yellow signal, there were indications of a slight downtrend. Its reading was 0.26, suggesting a decrease in unrealized gain despite the recent market decline.
Source: Glassnode
Furthermore, there was no significant difference when comparing the NUPL to its adjusted counterpart. Adjusted NUPL (aNUPL) is calculated by subtracting inert BTC supply from circulating supply. At the time of this writing, the aNUPL was also around 0.26.
60-day MVRV and price trend
Examining the 60-day Bitcoin Market Value to Realized Value (MVRV) ratio revealed that it was undervalued. At the time of this writing, BTC is trading below the zero line, around -4.6%. This value suggests that holders who acquired bitcoin within those 60 days are currently experiencing losses.
Source: Santiment
How much are 1.10.100 BTCs worth today?
Additionally, at the time of publication, the price of Bitcoin was in the undervalued territory, suggesting a potential price spike soon. Bitcoin traded at around 26,760 for a minimal loss of less than 1%.
While this price range has been maintained, a significant drop could result in a surge in BTC supply at a loss. Conversely, a significant uptrend in the price would increase the profit of the BTC supply.
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