Last week, the Bitcoin price suddenly collapsed. Overall, the price fell about 13% due to various factors and has remained around the level of the bottom ever since. On-chain data shows that the vast majority of traders are still in the red.
Traders can still sell BTC
This is what the blockchain analysis company Glassnode writes in the weekly research report The Week Onchain. The fall was relatively deep, but not overly deep. For example, the declines related to the Terra (LUNA), Three Arrows Capital (3AC) and FTX ecosystem issues were much deeper.
Still, 88.3% of short-term traders lose some measure. Glassnode assigns all bitcoin wallets to which BTC was moved less than 155 days to this category. Because of this relatively short term, the company considers these wallets to be speculative, which means they also react faster to a volatile market.
The baffled traders still own a total of $2.26 million in BTC, while the group, which is still profitable, owns just $300,000 in bitcoins. Glassnode reckons the underwater group could sell at a loss for some time to come. At this point, that would have happened only sparsely. However, these coins keep being sent to exchanges, suggesting that they are about to be sold.
Bitcoin Volumes Low, But Has the Bull Market Begun Yet?
Active traders are therefore suffering significantly from the current price. BTC speculator ownership is the lowest since its all-time high of $69,000, according to on-chain data from the previous week. This suggests that these traders may not be ready to enter the market at all, possibly because they expect lower prices anyway.
This also partially confirms why trading volumes are so low. They also fell sharply in the second quarter. But not everyone is pessimistic. Kevin Kelly, CEO of crypto research firm Delphi Digital, believes the next bull market has already begun. In his opinion, we just don’t see the mood yet.