On-chain data shows the amount of Bitcoin supply in loss has now reached levels similar to during the COVID crash and the 2018 bear market bottom.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the BTC supply in loss has set a new record for this year following the FTX disaster.<\/p>\n The \u201csupply in loss<\/a>\u201d is an indicator that measures the total amount of Bitcoin that\u2019s currently being held at some loss.<\/p>\n This metric works by looking at the on-chain history of each coin in the circulating supply to see what price it was last moved at.<\/p>\n If this previous price for any coin was more than the current BTC value, then that particular coin is in some unrealized loss right now, and the indicator accounts for it.<\/p>\n Now, here is a chart that shows the trend in the 7-day moving average Bitcoin supply in loss over the history of the crypto:<\/p>\n\n The 7-day MA value of the metric seems to have been pretty high in recent days | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin supply in loss has sharply risen up over the last couple of days as the price of the crypto has observed a deep crash<\/a>.<\/p>\n The current loss value is a new record for the 2022 bear market, and is also in fact the highest the indicator has been since the COVID black swan event back in 2020.<\/p>\n Notably, the amount of underwater supply in the market was also at similar levels back in late 2018, when the bear market of that cycle set its bottom.<\/p>\n If the same trend as in those previous bottoms follows now as well, then the latest high loss values may imply the market has now declined deep enough for a bottom.<\/p>\n However, even if the pattern does follow, it doesn\u2019t mean pain might be over for the investors. As is apparent from the chart, in the 2018-19 bear the market moved mostly sideways after the bottom, and also formed another peak of similar loss values, before some bullish wind returned to Bitcoin.<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $16.4k, down 18% in the last week. Over the past month, the crypto has lost 15% in value.<\/p>\n The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n Looks like the value of the crypto has recovered a bit since the crash below $16k | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows the amount of Bitcoin supply in loss has now reached levels similar to during the COVID crash and the 2018 bear market bottom.<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the BTC supply in loss has set a new record for this year following the FTX disaster.<\/p>\n The \u201csupply in loss<\/a>\u201d is an indicator that measures the total amount of Bitcoin that\u2019s currently being held at some loss.<\/p>\n This metric works by looking at the on-chain history of each coin in the circulating supply to see what price it was last moved at.<\/p>\n If this previous price for any coin was more than the current BTC value, then that particular coin is in some unrealized loss right now, and the indicator accounts for it.<\/p>\n Now, here is a chart that shows the trend in the 7-day moving average Bitcoin supply in loss over the history of the crypto:<\/p>\n The 7-day MA value of the metric seems to have been pretty high in recent days | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin supply in loss has sharply risen up over the last couple of days as the price of the crypto has observed a deep crash<\/a>.<\/p>\n The current loss value is a new record for the 2022 bear market, and is also in fact the highest the indicator has been since the COVID black swan event back in 2020.<\/p>\n Notably, the amount of underwater supply in the market was also at similar levels back in late 2018, when the bear market of that cycle set its bottom.<\/p>\n If the same trend as in those previous bottoms follows now as well, then the latest high loss values may imply the market has now declined deep enough for a bottom.<\/p>\n However, even if the pattern does follow, it doesn\u2019t mean pain might be over for the investors. As is apparent from the chart, in the 2018-19 bear the market moved mostly sideways after the bottom, and also formed another peak of similar loss values, before some bullish wind returned to Bitcoin.<\/p>\nBTC Price<\/h2>\n
\nFeatured image from Jonathan Borba on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"Bitcoin Supply In Loss Spikes Up Following The Latest Crash<\/h2>\n
BTC Price<\/h2>\n