According to recent reports from Glassnode, about 40% of BTC holders are “underwater”, as far as their investments are concerned. Likewise, a percentage of BTC wallets that fell into unrealized loss was noticed. This happens at a time when Bitcoin has retreated more than 50% in value, if measured from its highest peak.
That percentage is even higher when short-term incumbents are isolated. These are those who invested in the last six months when the price of the cryptocurrency peaked at around US$69,000.
When Bitcoin plummeted to near US$31K this past month, 15.5% of BTC wallets fell into “unrealized loss”. For several months now, a close correlation has been noticed between BTC and technology stocks (for example, Nasdaq), which calls into question its role as a hedge against inflation.
What does Glassnode’s analysis say about BTC?
In addition to the percentage of investors who had unrealized loss, the analysis firm also reported that there was an influx of “urgent transactions” in the midst of this latest liquidation. During this event, investors paid higher fees, indicating that they were willing to pay a premium to speed up Bitcoin transaction times.
Thus, the total value of all on-chain transaction fees paid reached 3.07 bitcoins over the past week. Therefore, this would be the highest rate recorded so far in its database. Likewise, during last week’s settlement, more than $3.15 billion in value entered or exited the exchanges. This would then be the largest amount since the market reached its all-time high in November 2021.
What happened to the whales?
Bitcoin whales are defined as those wallets with balances of more than 10,000 BTC. According to the Glassnode report, these have represented a particularly significant distributive force in recent weeks. They have also considerably reduced their accumulation, something that we highlight in the last weekly summary of their activity.
However, not only Bitcoin whales have followed this trend. The analysis firm assured, “from shrimp to whales”, they have softened their trends of accumulation in chain. That is, both small-scale and large-scale investors.
Despite the fact that there is more conviction among retail investors, the accumulation among these is noticeably weaker than in February and March. Usually, the data shows that those who have less than 1 bitcoin are the strongest accumulators.
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