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After the $5.7K Bitcoin price drop, hodlers are still holding 50% of the available BTC supply

After the $5.7K Bitcoin price drop, hodlers are still holding 50% of the available BTC supply – This week, Bitcoin (BTC) is setting records that are not to be envied, and hodlers of all sizes are feeling the pain as a result.

Over one-third of the Bitcoin supply is currently being held at a loss by long-term hodlers (LTHs), which marks a new all-time high according to data provided by the on-chain analytics firm Glassnode.

Those that keep positions for the long term are bearing huge unrealized losses

In recent days, there has been a significant decline in profitability, and data from on-chain transactions confirms that even the most seasoned investors are experiencing difficulties.

Investors began to suffer significant losses when the BTC/USD exchange rate dropped to depths not seen in two years, which were $15,600, and the situation is not significantly improved at the current price of $17,200.

According to Glassnode, LTHs held 35.4% of the BTC supply, which is equivalent to over 5.9 million coins, at a loss on November 9. This number decreased by only 1% the following day, November 10.

On November 9, short-term holders (STHs) controlled another 17% of the supply at a loss, while short-term investors who were profitable accounted for just 0.06% of the supply.

Bitcoin relative LTH/ STH supply in profit/ loss chart. Source: Glassnode

When determining whether a wallet address belongs in the LTH or STH category, we look at how long the address has been used to store coins: longer than or shorter than 155 days.

As a result of the COVID-19 crash, the total number of Bitcoin addresses that are profitable as a whole is currently at its lowest level since March 2020. This figure stands at 50%.

Bitcoin % address in profit chart. Source: Glassnode

BTC/USD experiences a trend line crossing that has never been seen before

Other on-chain metrics shed light on how profitability has been able to drop to such an alarmingly low level.

Related: the price of bitcoin jumps by $1,000 in minutes as the yen suffers a fresh 2% loss of value

Bitcoin’s 200-day moving average (MA) has reportedly dropped below its 200-week counterpart for the very first time, as reported by data from Cointelegraph Markets Pro and TradingView. This is a first in the history of the cryptocurrency.

To put it another way, the price of Bitcoin over the past two hundred days, when measured in relative terms and compared to historical patterns, has been unusually low.

Popular Twitter analytics account TXMC Trades remarked, “That’s a new one,” in response to the new tweet.

BTC/USD 1-week candle chart (Bitstamp) with 200-day, 200-week MA. Source: TradingView

According to a report from Cointelegraph, the 200-week moving average is a crucial price line in the sand that denotes the beginning of a bear market; however, Bitcoin has violated this line on a consistent basis this year.

Despite this, the trend line has never been seen to move in the opposite direction and is currently climbing higher.



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