1.66M Bitcoin (BTC) Held at a Loss: Is it a Buy Opportunity?
- With 1.66 million BTC being held at a loss, that is 8.34% of Bitcoins supply.
- Bitcoins market structure seems solid, considering most holders are either in profit or at breakeven.
- Bitcoins current dynamics present a sound equilibrium within the market that can confidently assert that panic selloff is minimal and strong bullish accumulation is set.
Bitcoin, currently priced at $94,184, is showing strength against the struggling state of the global economy. On-chain data from IntoTheBlock shared by analyst (Maartunn) reveals 1.66 million BTC (valued at over $157 billion) are being held at a loss, 8.34% of the total supply.
Source: X @JA_Maartun
This happened because during the peaks of the market, many investors reportedly bought tokens that are now below their worth. According to experts, this may look startling, but when assessed under the overall distribution of Bitcoin holdings, the alarming claim transforms into a promising opportunity.
Most Bitcoin Holders Are Still in Profit
83.93% of Bitcoin holders are in profit, even though 1.66 million BTC are still at a loss. This high percentage shows that a lot of investors bought the coin before its price surged and are holding on to it confidently.
These profitable holdings are roughly $1.58 trillion, which suggests that despite fluctuations, the overall sentiment in the market is positive. Additionally, 7.73% of holders are at a break-even point, which comes to around 1.54 million BTC, meaning their purchase prices are almost equivalent to the market price.
The majority of holders being either in profit or at breakeven shows healthy market sentiment. On the contrary, this small fraction of holders who are at a loss may temporarily sell, which would provide liquidity.
They may also consider waiting in hope for the prices to bounce back. Many times in history, periods of consolidation with few underwater holders lead to upward momentum due to decreased selling pressure and new buyers entering the market. Hence, a buy opportunity exists for those willing to take the risk.
Related Reading | Cardanos EUTXO Powers Scalable, Secure Smart Contract Systems
Read more: https://www.tronweekly.com/1-66m-bitcoin-btc-held-at-a-loss-is-it-a-buy/
Text source: TronWeekly
