40% Of Bitcoin Holders Are Underwater, New Data Has Shown

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The price of Bitcoin (BTC) is attempting to recover today after plummeting below $30,000 on Monday, hitting a low of 12%.

The world’s largest cryptocurrency is presently trading at roughly $31,500 at 6:00 a.m. EST (1000 GMT).

Bitcoin hadn’t traded below $30,000 since July 2021, when it went as low as $29,839. The most recent dip coincides with a broader decline in the value of cryptocurrency and stock markets.

40% of bitcoin investors underwater: Glassnode data

According to the blockchain data platform Glassnode, over 40% of Bitcoin owners are losing money on their investments. Moreover, according to last month’s figures, 15.5 percent of all Bitcoin wallets experienced an unforeseen crushing loss when Bitcoin plummeted below $31,000. As a result, Bitcoin’s strong ties to technology companies and the Nasdaq cast doubt on assertions that it acts as an inflation hedge.

Furthermore, during the most recent sell-off, Glassnode data reveals an increase in “urgent transactions.” To put it another way, investors paid higher costs to minimize transaction times. Therefore, the total value of all on-chain transaction costs paid reached 3.07 Bitcoin in the past week.

Bitcoin price crash has left 40% of investments unprofitable - The Fifth  Skill

According to Glassnode experts, “the dominance of on-chain transaction fees connected with exchange deposits also signalled urgency.”

Furthermore, the decrement from yesterday was worsened by the fall of the stablecoin TerraUSD. The fourth-largest stablecoin fell 40%, breaking its 1:1 peg to the US dollar.

Stablecoins are digital tokens whose value is linked to that of traditional currencies. Stablecoins are popular safe-haven bets among investors, and they serve as a means of exchange, allowing traders to move funds around and wager on other crypto assets.

What Is a Stablecoin? - CoinQuora

Unlike other stablecoins with traditional currency reserves, TerraUSD maintains its peg to the dollar using an algorithm that moderates supply and demand through a long and complicated process involving another token, Luna.

The overall market capitalization of Bitcoin is presently at $1.43 trillion, down more than half from its all-time peak in November.

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