30% Of Bitcoin Supply Enters Into Loss As Price Continues Decline

On-chain data reveals more than 30% of the Bitcoin supply has entered into losses as the price of the crypto continues to decline. Less Than 70% Of Bitcoin Entities Are Now In Profit As per the latest weekly report from Glassnode, the percentage of BTC entities in profit has severely dropped recently as the value now oscillates between 76% and 65%. The “percent of entities in profit” is an indicator that measures the percentage of Bitcoin investors that are currently in profit. The metric works by looking at each coin on the chain and checking its history to see the price it last moved at. If this price is less than the current one, then the coin has accumulated some profit. On the other hand, it being bought at a higher price would imply that it’s in loss at the moment. An “entity” here refers to a collection of addresses that are controlled by the same investor(s). So based on whether the coins held by these entities are in profit or loss, it’s possible to talk about the profit status of the entity as a whole. Related Reading | El Salvador Prepares Regulatory Framework To Issue Controversial Bitcoin Bonds Now, here is a chart that shows the trend in the Bitcoin percent of entities in profit over the past three years: Looks like the indicator's value has sharply dropped recently | Source: The Glassnode Week Onchain - Week 8, 2022 As you can see in the above graph, the Bitcoin perc...