Bitcoin: More pain for holders as on-chain readings suggest further decline…

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A review of on-chain metrics indicated that the price of BTC could fall further in 2023 Many BTC holders have not seen profits on their investments since the collapse of FTX

An evaluation of two on-chain metrics revealed that Bitcoin [BTC] holders could face a tough year in 2023 as negative sentiment continues to trail the centerpiece. Trading at $16,941.08 at press time, BTC has traded between $16,500 and $16,900 since last December, according to data from CoinMarketCap.

ReadBitcoins [BTC] Price Prediction2023-24

CryptoQuant analyst Gigisulivan assessed the stock-to-flow reversion of BTC and believed that the price of BTC could fall further below the $16,700 mark at some point in the current bear market.

Gigisulivan predicted that BTC may attempt to trade in the $20,000-$22,000 price range following the release of favorable Consumer Price Index (CPI) data next week. However, this suggests that BTC holders should not expect much, the analyst concluded adding that,

Just a thought, given that 2023 could be worse than 2022 once we know what kind of recession we’re getting.

Source: CryptoQuant

Another CryptoQuant analyst, Yonsei_dent, found that negative sentiment continued to grow as long-term Bitcoin holders stepped up their coin distribution. Yonsei_dent looked at the BTC support-adjusted dormancy indicator and found that it has been on an upward trend since mid-December.

Commenting on the impact of the continued increase in BTC dormancy from a market trend perspective, Yonsei_dent reviewed historical indices of BTC performance in the 2018 bear market and found that it indicated an increase in sales to protect against further investment losses.

Source: CryptoQuant

Bitcoin losers count their losses

With negative sentiment lingering since the FTX fallout, BTC holders have since been mired in losses. An assessment of the realized profit-to-loss (NPL) ratio of the King Coins network revealed that the metric has been negative since the wake of the FTX debacle.

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An asset NPL measures the overall profit or loss of the network of assets, based on the price at which each unit of the crypto asset was last traded. A negative NPL ratio suggests that the network as a whole has made a loss.

At press time, BTC’s NPL ratio stood at -9.47 million, data from Santiment revealed.

Also, following a similar trend, the market-to-realized-value (MVRV) ratio of BTC has since been negative. A negative MVRV ratio indicates that the market value of the relevant crypto asset is lower than the value at which it was recently traded.

This showed that Bitcoin has since been undervalued, and most people who have since sold have seen losses.

Source: Santiment

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