While the weekend saw Bitcoin move back above $22,000, half of the holders are currently seeing unrealized losses.
Bitcoin still in bear market
While the market is still plunged into the bear market, and Bitcoin has gone back above $20k for the umpteenth time, Bitcoin is still recording significant unrealized losses over 6 months and 1 year.
Indeed, while Bitcoin temporarily traded around $69,000 last November, the asset has been steadily falling ever since. Currently, only the half of bitcoins held by holders are in unrealized gains. The other half of the purchases, many of which were made in the months before and after the November 2021 ATH, acquired the asset at prices above the current exchange price.
While BTC has been stuck at its current prices since June 2021, a slight bullish rally began late last week, which continued slowly over the weekend.
Even before this rally, 50% of BTC holders were positive according to the on-chain metric called Net Unrealized Profit or Loss (NUPL). A still substantial amount as the bear market has been going on for many months, and it doesn’t seem ready to end yet.
However, these data are currently only theoretical, since these gains or losses are not realized because the assets held have not been sold by the holders. Thus, the holders are not making any profit or loss at the time of writing this article, until the moment they decide to exchange their assets.
The NUPL indicator thus seeks to describe whether Bitcoin holders face unrealized gains or losses. If the number is positive, then more holders have pending benefits; on the contrary, if the number is negative, the holders record unrealized losses on their BTC holdings.
In the current scenario, with a value of the indicator close to 0, half of the investors are making profits while the other half are negative.
Falling selling pressure for the crypto asset?
According to data shared by Glassnoderecent days also show similar levels between losses and unrealized gains on the last seven days, while long-term holders are not succumbing to further liquidation. They even withdrew their BTC from the exchanges for some, determined to hold over the longer term and upstream of better macroeconomic prospects.
Selling pressure may well have eased on Bitcoin since only 9% of the BTC in circulation would currently be deposited on centralized exchanges while at the beginning of the year, 12% of the assets were on these same exchanges. However, a lower quantity of Bitcoin deposited on the exchanges means that the liquidations to come would be less and that the major sales would finally be over, as has been shown. note SAXO markets.
Currently, Bitcoin is trading at $22,400, up +4% over the past 24 hours.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.
We want to say thanks to the writer of this post for this amazing content
Bitcoin: half of the “held” tokens are in losses – BeinCrypto International
Explore our social media profiles as well as other related pageshttps://metfabtech.com/related-pages/