Despite the fact that many people are selling Bitcoin at a loss, the bottom might not be here yet, according to one analysis.
Some analysts believe that bitcoin's 80% drop from its all-time high might still be causing trouble for the asset.
It's no secret that the cryptocurrency market has been in a bit of a slump lately. Prices have been down across the board, and bitcoin is no exception. However, it seems that some investors are choosing to sell now despite the losses they'll incur, perhaps in hopes of avoiding even greater losses down the road. Only time will tell if this is a wise strategy or not.
While the percentage of investors selling off their holdings is significant, it may not be enough to mark a bear market bottom. Only time will tell if this is truly the bottom of the market, or if there is further downside to come.
- As the cryptocurrency market continues to experience volatility, many investors are selling their bitcoin holdings at a loss, according to an analysis by CryptoQuant. The aSOPR (adjusted SOPR), which excludes all BTC transactions with a lifespan younger than one year, suggested that many investors are selling their bitcoin holdings at a loss now. This is a trend that we are likely to see continue in the short-term, as investors look to cut their losses in a market that remains highly volatile.
- It is possible that the primary cryptocurrency has finally bottomed out following the massive price decline experienced in the past year. This could provide a good narrative for investors and help to spur on further adoption of the currency.
- The strategist warned that the situation is not that simple, at least according to another metric – UTXO.
- It is encouraging to see that 70% of the unspent transaction output (UTXO) is still profitable, despite the recent bearish market conditions. This shows that there is still a lot of underlying value in cryptocurrencies like Bitcoin (BTC). Hopefully, this trend will continue and we will see even more UTXO becoming profitable in the future.
“Most of the people who are selling at a loss now are relatively recent participants. The real bottom comes when more than half of investors in the entire cycle, including this, lose money.” – reads the analysis.
- Although bitcoin has dropped by around 75% since its all-time high last November, another popular crypto analyst has warned that it could further drop to as low as $9,500 if it follows the pattern of previous bear markets. However, some investors remain optimistic about the digital currency's long-term prospects, believing that it will eventually rebound and reach new highs.
Despite the current market conditions, some analysts believe that the bottom for Bitcoin has not yet been reached. While many investors are selling their Bitcoin at a loss, some believe that the market has not yet hit its lowest point. Only time will tell if these analysts are correct.