In the Bitcoin market, for the first time during the current cycle, the supply held at a loss exceeded the supply held at a profit. According to Glassnode data, 10.83 million BTC is held at a cost above the current price, while 9.22 million BTC is still in profit. This table revealed the impact of the correction on the market after the peak of 109 thousand dollars in January.
The pressure on the market deepened
This threshold has coincided with periods in past cycles when financial pressure reached its highest levels and especially new buyers turned to selling. It is considered that in similar periods, there has been a transition from weak hands to more resilient investors in the market. It is accepted that investors who are willing to take a loss generally have a longer-term perspective.
As a research company that analyzes on-chain data, Glassnode monitors investor behavior and supply movements in crypto asset markets.
Glassnode data shows that for the first time in the current cycle, the supply of Bitcoin at a loss exceeded the supply at a loss.
Prices showed signs of recovery
Bitcoin traded at $61,361 on Thursday. The asset rose 0.7 percent on a daily basis and 2.5 percent on a weekly basis, but remained approximately 44 percent below its all-time high in January. Ether gained 4.2 percent in value, rising to $1,702, while Solana increased by 18.6 percent weekly, reaching $80.44. Transaction volume in Solana exceeded $3.6 billion.
| Presence | Price | daily change | Weekly change |
|---|---|---|---|
| Bitcoin | $61,361 | 0.7% | 2.5% |
| ether | $1,702 | 4.2% | Not specified |
| solana | $80.44 | Not specified | 18.6% |
It is not considered sufficient on its own for a bottom signal.
Similar data seen in the past between 2018 and 2019 and in 2022 pointed to months of horizontal movements before a permanent recovery. Therefore, it seems that the current transition alone is not considered a definitive bottom indicator.
In order for the accumulation trend in the market to be strongly reflected in prices, inflows to spot Bitcoin ETFs must accelerate again and macroeconomic pressure must ease. The fact that long-term investors continued their purchases and the increase in balances in different wallet sizes were among the factors that showed that the tendency to accumulate was gaining strength.
Similar supply shifts have been seen before, but for a sustained recovery, ETF flows need to strengthen and macro pressure to ease.
