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This is not hodling! More than 50% of Bitcoin addresses are still in profit

This is not hodling!  More than 50% of Bitcoin addresses are still in profit

More than half of Bitcoin (BTC) addresses are still in profit, raising questions about the intensity of the “bear market.”

Data from Glassnode, a company specializing in chain analysis, confirms that 56.2% of addresses on June 20 were worth more in US dollars than their bitcoins entered.

Profitability is not the same as previous market low

As BTC / USD fell to a 19-month low of $ 17,600 over the weekend, analysts were expecting a pullback of up to 84.5% compared to historical highs.

There is confusion this year as these highs are not “high enough” compared to the historical highs of the bull market.

The ensuing withdrawal was a great surprise, even though it has not yet reached the bear markets.

Glassnode figures confirm this idea. Minimum volumes in the price of BTC at the same time with less than half of the addresses are still profitable, so the current recession still has some way to go if it is to register within historical patterns.

In March 2020, for example, profitable launches fell to 41%, and before that, the 2018 bear market also saw a fall below 50%.

Graph of percentage of profitable bitcoin addresses. Source: Glassnode

However, panic may already be settling in. As Cointelegraph reported, there was an increase in realized losses among people who were too uncomfortable to keep their funds for longer.

On June 13, network losses were the largest in bitcoin history, reaching $ 4.76 billion in any 24-hour period.

Graph of realized losses on bitcoin. Source: Glassnode

The market is approaching the big short sale

On the question of how many sales need to be made before the market reverses, Dylan LeClair, chief analyst at UTXO Management, plans to split retail traders and derivatives traders.

Read also: BTC Price Recovers to 3 Day and New Whale Support Forms At $ 19,200

In the past, he explained this week, individuals would sell first, and speculators would complete the process by shortening BTC at extremely low levels.

“We’re getting closer,” summarizes part of a tweet that is accompanied by a graph showing that costs for short sellers are rising as prices have fallen over the past few days.

Most importantly, the BTC derivatives market sells shortly after most of the on – the – spot sales have taken place. We are getting closer … pic.twitter.com/HfDDflu06D
– Dylan LeClair (@DylanLeClair_) June 20, 2022

LeClair said more liquidations in the DeFi space are likely to be needed before a definitive fund can be put in place.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.

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