Bitcoin fell to $17,600 over the weekend. The price reached a 19-month low after retracing 84.5% from all-time highs. However, 56.2% of bitcoin holders are still in profit.
This year hasn’t seen high enough gains for BTC. Since the latter half of 2020, the Bitcoin market kept fluctuating and testing the upper bar for a solid 1.5 years. But the good days seem to be over.
Crypto market is once again facing panic selling as many holders run to sell their before an additional bottom sets in. The current year has not seen the drawdown like the previous markets but still, 84.5% fall from an all-time high is significant to scare paper hands.
The data from Glassnode revealed that 56.2% of Bitcoin addresses currently hold BTC worth more value than when they were purchased. This number is higher compared to profitable addresses in previous bull markets.
In March 2020 bear market, the number of profitable addresses fell to 41%. Likewise in 2018, the drop in BTC value brought the number of profitable accounts to below 50%.
The global economic recession has taken its toll on the crypto market as well. Popular cryptocurrencies have lost more than 50% of their value. The poster child of Crypto is taking the lead in taking the market down with it.
On June 13, Bitcoin holders suffered a historical realized loss. The on-chain bitcoin history showed $4.76 Billion losses in the 24-hour period.
Is the Worst Yet to Come?
According to analysts, the bitcoin market has not touched the bottom as of yet. Dylan LeClair, the senior analyst at UTXO Management, said in his tweet on Tuesday that the bottom is close.
Bottom is in when the derivatives market is shorting $BTC into the dirt after the brunt of the spot selling has taken place.
Getting closer… pic.twitter.com/HfDDflu06D
— Dylan LeClair 🟠 (@DylanLeClair_) June 20, 2022
It is easier for bitcoin hodlers to hold when they are in profit. Nonetheless, the bottom may see a new wave of panic selling in the market.