On-chain data shows the distribution of addresses holding Bitcoin at a loss after spending an estimated $25 billion to enter the market at $52,125.
Market watcher Lookonchain has called attention to a significant selling pressure that the crypto market may experience soon amid the percentage of addresses holding Bitcoin at a loss.
$25B Bitcoin in Loss
In an update on X, Lookonchain pointed out that some 848,390 Bitcoin wallets joined the BTC market with an average purchase price of $52,125. The platform cited data from the reputable market intelligence resource IntoTheBlock.
Per the statistics, the 848.39K BTC wallets collectively spent a staggering $25 billion to acquire approximately 481,710 BTC at that price point.
However, Bitcoin has encountered resistance since breaking the $52k, struggling to reclaim a new territory. Effectively, the addresses that acquired Bitcoin around $52k have been shouldering losses as BTC trades below the price point.
Lookonchain has speculated that the 848,390 BTC wallets, which invested over $25 billion in Bitcoin, may exert selling pressure once their positions reach breakeven.
Data from @intotheblock shows that 848.39K addresses bought ~481.71K $BTC($25B) at an average price of $52,125.
These addresses are currently at a loss and may generate selling pressure when their positions reach breakeven.https://t.co/DsTpEwOO9b pic.twitter.com/87Rthk8wGC
— Lookonchain (@lookonchain) February 20, 2024
Community DisagreesÂ
However, crypto market participants have challenged Lookonchain’s claim that the addresses could generate selling pressure. They find the analysis mysterious. Specifically, they question why those holders would opt to sell at breakeven instead of aiming for profit.
Furthermore, another commentator who voiced disagreement pondered why anyone purchasing BTC presently would settle for a mere 3% profit.
This commenter grounded his view in the fact that Bitcoin halving is approaching this year. Moreover, he pointed out that BTC-based exchange-traded funds (ETFs) are experiencing record inflows.
Bitcoin Addresses in Profit
Meanwhile, closer scrutiny of IntoTheBlock’s data regarding the 848,390 BTC wallets revealed subtle details.
Per the record, the minimum entry point among the addresses in question was $51,773, while the maximum entry was $53,323. This suggests the presence of long-term holders within this range since BTC last reached $53k two years ago.
Essentially, the 848,390 addresses may not represent the traders who recently entered Bitcoin following the surge past $50,000.Â
Additionally, IntoTheBlock statistics indicate that there are currently 2.45 million wallets holding Bitcoin at a loss, accounting for 36.67% of BTC holders. In contrast, over 4.2 million BTC holders are profitable, reflecting 62.91%.
At press time, Bitcoin trades at $52,013, having reached a height of $52,850 in the last 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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