Why Are 80% of Bitcoin Holders Still in the Red When the BTC Price Is Oscillating at $60,000
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Journalist
Journalist at AskFX
- BTC has hit the $60,000 price mark at press time.
- Price volatility has caused further losses for short sellers.
Last Updated: August 20, 2024
[BTC] Bitcoin Price Dips Below $60k As Short Sellers Experience More Losses
Bitcoin [BTC] has struggled to keep its price above $60,000 and has frequently fallen below this key threshold in recent weeks. Price volatility has particularly affected Bitcoin holders, with many of them holding their investments at a loss.
Recent research has shown that more than 80% of short-term Bitcoin holders were holding their BTC at a loss at press time. This meant that their Bitcoin investment was worth less than they initially paid for.
The analysis compared the current scenario with similar market conditions in 2018, 2019 or mid-2021. During these periods, many short-term investors also held their positions at a loss. This led to an increase in panic selling and contributed to the ongoing bearish trend as investors tried to cut their losses.
AskFX’s analysis of Santiment’s 30-day Market Value to Real Value (MVRV) confirmed the challenges facing short-term Bitcoin investors. The MVRV is below zero and has been for a long time, suggesting that most short-term investors have been holding their investments at a loss. It fell to -13% on August 5 but improved slightly to -5% on August 18 before reaching around zero as of now.
“Bitcoins remain profitable for more Bitcoin holders”
Shifting our focus from short-term holders to the entire Bitcoin holder base gives a more optimistic forecast.
According to data from IntoTheBlock, over last two weeks majority of addresses were out-of-the-money meaning they lost money based on press time prices but currently Over almost over less flags addresses were profitable versus losing , whichshows some positive flux expectaions . It follows that thier is no change
Price Data Report
Source: newstrade24.club
from AskFX newsroom
