Bitcoin Supply In Loss Reaches 50% As BTC Drops Below $20k

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the percentage of the Bitcoin supply in loss has surged to almost 50% now as the crypto’s price tumbles below $20k.

49.94% Of The Total Bitcoin Supply Is Now Holding Some Loss

As pointed out by an analyst in a CryptoQuant post, the drop below $20k has now put almost 50% of the supply underwater.

The “percent supply in loss” is an indicator that measures what part of the total Bitcoin supply is currently in the red.

The metric works by checking the transfer history of each coin on the chain to see what price it was last moved at.

If the previous selling price of a coin was more than the current BTC price, then that particular coin is being held at some loss right now.

On the other hand, if the coin was last moved at a lower price than now, then the coin is in profit instead. The supply in loss naturally only counts the former type of coins.

Now, here is a chart that shows the trend in the Bitcoin supply in loss over the last few years:

Looks like the value of the indicator has been rising up recently | Source: CryptoQuant

As you can see in the above graph, the percentage of the Bitcoin supply in loss has been going up in recent weeks as the price has been crashing down.

The latest drop in the value of the crypto, which has now taken it below the $20k level, has pushed a further amount of supply underwater.

Now, the total percentage of the supply in the red has reached very nearly 50%. Historically, periods with value of the indicator between 50% to 60% have been when the coin has observed bottoms before.

Because of this, the range may be ideal for accumulating Bitcoin. However, a real bottom may still have some ways to go as the supply in loss has only just now reached the 50% mark.

During the last two bottoms, the value of the metric was at least 55%. If a similar pattern follows now as well, then the crypto may have potential for more downtrend before the bottom is finally in.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.2k, down 33% in the last seven days. Over the past month, the crypto has lost 37% in value.

The below chart shows the trend in the price of the coin over the last five days.

The value of the crypto seems to have plunged down over the past day | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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