30% of Bitcoin Buyers in Circulation Are Losing Money Now, Study Finds

Blockchain news platform Glassnode reported in its weekly newsletter that approximately 5.7 million Bitcoin holders currently in circulation are on the verge of plummeting and their Bitcoins are worth more than they could have been worth. be, let's say less. , which is equivalent to 30% of Bitcoin shipments.

Cryptocurrencies have generally fallen in recent months as the US Treasuries performance boosted expectations of higher interest rates by the US Federal Reserve this year. The global cryptocurrency market capitalization has fallen from $3 trillion two months ago to less than $2 trillion.

Bitcoin is currently trading around $42,000, more than 30% below its all-time high of nearly $69,000 in November.

Glassnode said: "More and more bitcoin devices have fallen into bad condition. Currently, around 5.7 million bitcoins have been submerged in water (about 30% of shipments).

However, the company said that history tells us that all is well if Bitcoin holders can keep them cool. Twice before, Bitcoin prices rose amid weak demand for its products.

One of them happened between May and July 2020, when the cryptocurrency market collapsed due to the protection against COVID-19, but prices quickly rebounded thanks to the government and the local banks. The medium comes with a support measure.

Another incident occurred in May and July 2021. The value of the cryptocurrency fell below the event level. Glassnode says the Bitcoin bulls' patience paid off in both losses.

However, there is no hope of a return, as UBS analysts warned in a report on Friday that the cryptocurrency market will experience another "winter" of price declines and may not return for years.

UBS says the Fed's rate hike this year will reduce the popularity of cryptocurrencies like Bitcoin in the eyes of many investors. Indeed, rising interest rates could erode the idea that Bitcoin is a better value or a premium market. Other factors that can cause downtime include numerous inadequacies in technology and management issues.