Bitcoin is being hit by bears, who wish to see its price plummet to the lowest possible level. It has had to struggle to maintain its price. However, bitcoin has not been able to keep its value above the last cycle due to a number of events and investors leaving the market.
Bitcoin falls below $20,000
Bitcoin’s price has now fallen below $20,000 for the third time this year with so many hurdles in between. The bears once more took control after struggling to hold $22,000. This led to another drop. Bitcoin’s fall to the $19,000 level carries the same implications as it has the other times but one thing that differentiates them is where the price had peaked before it made this fall.
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This is not surprising considering the speed at which digital assets are being withdrawn from money. The current bottoms are not comparable to other bear market bottoms. Investors are suffering heavy losses as a result of June’s cryptocurrency crash. This was the biggest ever recorded.
Even worse, reports show that people who own their coins for at least 3-5 years are losing 33% per annum on average. Even worse is the case for investors with shorter term records of losses.
BTC drops footing over $20,000| Source: BTCUSD on TradingView.com
Profitability begins to fall
The profitability of bitcoin holders was stable and has remained steady throughout most market crashes. The reason for this was that a lot of bitcoin owners are long-term investors, and the digital asset has maintained its peak during previous cycles. Its profitability has plummeted as bitcoin’s value has fallen below $20,000
Data from IntoTheBlock gives a clear picture of how much profit has dropped in the past few months. With 48% each, the ratio of profit and losses in holders is equal. The rest of the holders, which are 3% below this level, simply remain in middle.
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These inflows speak volumes about recent sell-offs in the market. There have been inflows of $4.14 trillion over the past seven days. Outflows exceeded this volume with $4.27 billion. However, this shows that investors still sell almost as much as their purchases.
As for bitcoin’s price, it remains below the coveted $20,000 level. At $19,800, bitcoin is now trending. This digital asset has dropped 71% since its high.
Featured Image from US News Money.
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