The Bitcoin addresses that are in profit dropped from 82% to 70% following yesterday's sharp decline.
Bitcoin’s most recent downturn also took a toll on the addresses that are in profit – they decreased from 82% to 70% in less than a couple of days.
As CryptoPotato reported yesterday, the entire cryptocurrency market tumbled following a broader collapse of stocks throughout the world amid rising debt crunch fears in China.
This saw over $800 billion worth of both long and short positions liquidated, and Bitcoin’s price tumbled to as low as $40,200 earlier today.
The sharp decline also caused a lot of the addresses that were previously in profit – to not be. Precisely, the number of addresses in profit slumped from 82% to 70%.
Glassnode also made comment on the sharp move. According to them:
When the Bitcoim market eperiences significant price moves, we can assess the change in profitable on-chain entities to gauge zones of cost basis concentration.
Approximately 8.6% of on-chain entities (wallets with the same owner) have a cost basis between $43K and $48K.
Source: Glassnode
It’s interesting to see how the market will turn from its current point. Knowing that around 8.6% of on-chain entities have their coins bought between $43K and $48K means that they are currently either underwater or break even.
Georgi Georgiev is CryptoPotato's editor-in-chief and seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn
