As the cryptocurrency’s price continues to fall, on-chain data shows that more than 30% has suffered losses.
There are less than 70% of Bitcoin Entities that are currently in Profit
According to the most recent weekly Glassnode report, profit margins for BTC entities have dropped dramatically. They now fluctuate between 76% and 65%.
The “percent of entities in profit” is an indicator that measures the percentage of Bitcoin investors that are currently in profit.
This metric is based on looking at the coins in the chain, and checking their history to find the last time it moved. The coin is considered to have made some profits if its current price is lower than it. On the other hand, it being bought at a higher price would imply that it’s in loss at the moment.
An “entity” here refers to a collection of addresses that are controlled by the same investor(s). So based on whether the coins held by these entities are in profit or loss, it’s possible to talk about the profit status of the entity as a whole.
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Below is a chart showing the Bitcoin profit percentage over the three-year period.
Source: The Glassnode Week Onchain - Week 8, 2022| Source: The Glassnode Week Onchain - Week 8, 2022
The graph above shows that the Bitcoin profit percentage has fallen to below 70%. This means that 30% or more of these entities are in losses.
According to the report, more than 10% bought their coins for between $33k- $44k. So if the price doesn’t catch an uptrend soon, many of these will start going underwater, and some will thus also be forced to sell their coins.
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This can lead to yet more selling pressure in the Bitcoin market, and would therefore be bearish for the crypto’s outcome.
BTC price
Bitcoin’s price crashed below the $37k mark early today, but has since recovered a bit. At the time of writing, the crypto’s price floats around $37.4k, down 15% in the last seven days. In the last month, the value of the crypto has risen by 3%.
Below is a chart showing the change in BTC’s price over the past five days.
BTC price appears to have fallen sharply in the last few days. Source: BTCUSD tradingview| Source: BTCUSD on TradingView
Investors have begun to exit risk markets as they become more uncertain due to rising geopolitical tensions. Bitcoin prices have plunged as a result.
Unsplash.com's featured image. Charts by TradingView.com. Glassnode.com's charts.