Ongoing crypto market downturn forces 2,710,000 Bitcoin (BTC) into loss territory: Glassnode

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Blockchain analytics firm Glassnode claims that the latest market downturn has plunged millions of Bitcoin (BTC) underwater.

Glassnode says that Bitcoin’s fall from the recent high of $30,900 in mid-April has caused an additional 2.71 million Bitcoin to sink into loss territory, or roughly 14% of the total circulating supply of BTC.

The latest market drop increased Bitcoin’s total supply underwater from 3.96 million BTC to 6.67 million BTC, according to the analytics firm.

The -14.6% decline from the local high of $30,900 to our current spot price of $26,400 pushed 2.71 million BTC into an underwater position, equivalent to 14% of supply in circulation. This increases the total loss supply over the aforementioned period from 3.96 million to 6.67 million BTC, an increase of 68.4%.

Source: Glassnode/Twitter

Glassnode also notices that more of the Bitcoin circulating on crypto exchanges is at a loss based on the profit-to-loss ratio, which compares the number of coins at a loss to those at a profit.

When evaluating the profit-to-loss ratio (bias) of Bitcoin deposit volume on exchanges, we note a current negative bias of 0.7, which suggests that coins are flowing into exchanges at a loss.

Source: Glassnode/Twitter

Short-term (STH) holders of Bitcoin, not long-term (LTH) holders, are likely responsible for most of the recent influx of BTC to exchanges, according to the analytics firm.

Breaking down the FX entry bias by short- and long-term holders, we note that LTH registers a positive bias of 1.73, experiencing profitable entries. The reverse is true for STHs, recording a negative bias of 0.69, a value similar to the marketwide bias of 0.7, suggesting that STHs currently dominate trade entries.

Source: Glassnode/Twitter

Bitcoin is trading for $26,717 at the time of writing, up 0.9% in the last 24 hours.

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