Blockchain analytics firm Glassnode says that the latest market downturn plunged millions of Bitcoin (BTC) underwater.
Glassnode says that Bitcoin’s drop from the recent top of $30,900 in mid-April sunk an additional 2.71 million Bitcoin into loss territory, about 14% of the total BTC circulating supply.
The latest market dip increased the total Bitcoin supply underwater from 3.96 million BTC to 6.67 million BTC, according to the analytics firm.
“The -14.6% move downwards from the local top of $30,900, to our current spot price of $26,400 has propelled 2.71 million BTC into an underwater position, equivalent to 14% of the circulating supply. This raises the total supply in loss across the aforementioned period from 3.96 million to 6.67 million BTC, a 68.4% increase.”
Glassnode also notices that more of the Bitcoin flowing onto crypto exchanges is at a loss based on the profit/loss ratio, which compares the number of coins sitting at a loss to those at a profit.
“When assessing the profit/loss ratio (bias) of Bitcoin deposit volume to exchanges, we note a current negative bias of 0.7, suggesting coins are flowing into exchanges at a loss.”
According to the analytics firm, short-term holders (STH) of Bitcoin, not long-term holders (LTH), are likely responsible for most of the recent inflow of BTC to exchanges.
“Breaking down the exchange inflow bias by short and long-term holders, we note that LTHs are recording a positive bias of 1.73, experiencing profitable inflows. The converse is true for STHs, recording a negative bias of 0.69, a value similar to the market-wide bias of 0.7, suggesting STHs are currently dominating exchange inflows.”
Bitcoin is trading for $26,717 at time of writing, up 0.9% during the past 24 hours.
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