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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

Brace For More Downtrend: 15% Of Bitcoin Supply Is Now In Loss

Keshav Verma
Keshav Verma
1 year ago
3 mins read
Bitcoin Bear

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Created by industry experts and meticulously reviewed
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Data shows around 15% of the total Bitcoin supply is now in loss, a value that has historically been sufficient to push the price down.

Percentage Of Bitcoin Supply In Profit has Fallen Down To Just 85%

As per the latest weekly report from Glassnode, the total BTC supply in profit has fallen down to just 85% this week, meaning that 15% of the supply is now in loss.

The “percent supply in profit” is a Bitcoin indicator that highlights the share of the total supply that’s currently in profit.

The metric works by looking at what price each coin in the chain was last moved at. If this price was less than the current price, then the coin is said to be in profit. While if this price was higher, then the coin is considered to be in loss.

If the indicator attains very high values (more than 95%), then a Bitcoin market top may follow soon. But if the metric’s values are low enough (less than 5%), then a bottom could be formed instead.

Related Reading | IMF Report On El Salvador Is Positive… Except For Everything Bitcoin-Related

Now, here is a chart that shows the trend in the value of the percent BTC supply in profit over the past year:

Bitcoin Supply In Profit

Looks like only 85% of the BTC supply is now in profit | Source: The Glassnode Week Onchain (Week 47)

As the above graph shows, the percent supply in profit has severely fallen off in the past week as Bitcoin’s price declines. Now, around 15% of the total supply is in loss.

The report mentions that the 85%-90% zone may be considered as a “bull and bear transition zone.” There are two instances of the indicator entering this zone previously in the chart.

Related Reading | Inverse Signals: Why Bitcoin Weakness Is Attributed To Dollar Strength

The first was when the May Bitcoin crash happened, and the second coincided with the El Salvador Day crash. The report notes that a value of 85% is enough to push the price of the crypto down if no higher value is clamed in a reasonable timeframe, similar to what happened during those instances.

BTC Price

At the time of writing, Bitcoin’s price floats around $56.8k, down 6% in the last seven days. Over the past month, the coin has lost 5% in value.

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

Bitcoin Price Chart

BTC's price slides down in the last few days | Source: BTCUSD on TradingView

Over the last week, Bitcoin has mostly consolidated below the $60k price mark. Currently, it’s unclear when the coin may recover, but if the percentage of supply in profit is anything to consider, BTC may decline even further.

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

Keshav Verma

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

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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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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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