The ongoing downturn in the crypto market forces 2,710,000 Bitcoin (BTC) into the red: Glassnode
Blockchain analytics firm Glassnode says the recent market downturn has flooded millions of bitcoin (BTC).
Glassnode says bitcoin’s drop from its recent high of $30,900 in mid-April has pushed another 2.71 million bitcoin into loss territory, about 14% of total circulating BTC supply.
According to the analytics firm, the recent market slump boosted total bitcoin supply underwater from 3.96 million BTC to 6.67 million BTC.
“The -14.6% move down from the local high of $30,900 to our current spot price of $26,400 has pushed 2.71 million BTC into an underwater position, which is 14% of circulating supply.” This increases the total losing supply on the upside said period from 3.96 million to 6.67 million BTC, an increase of 68.4%.”
Source: Glassnode/Twitter
Glassnode also notes that a larger proportion of bitcoins flowing on crypto exchanges are experiencing losses based on the win-loss ratio, which compares the number of coins experiencing losses versus those with gains.
“When assessing the profit-loss ratio (bias) of Bitcoin deposit volume on exchanges, we note a current negative bias of 0.7, suggesting that coins are entering exchanges at a loss.”
Source: Glassnode/Twitter
According to the analytics firm, Bitcoin short-term holders (STH) and non-long-term holders (LTH) are likely responsible for the majority of the recent BTC inflow to exchanges.
“Breaking down the FX inflow bias by short and long-term holders, we find that LTHs register a positive bias of 1.73 and register profitable inflows. The opposite is true for STHs, which register a negative bias of 0.69, a reading similar to the market-wide bias of 0.7, suggesting that STHs are currently dominating FX inflows.”
Source: Glassnode/Twitter
Bitcoin is trading at $26,717 at the time of writing, up 0.9% over the past 24 hours.
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