Bitcoin supply in loss is now at 68% after the BTC price dropped from its local top of $31k
- The percentage of Bitcoin supply in loss has increased to 68%, which is equal to 6.67 million BTC that is currently underwater at the spot price.
- On-chain data indicates that 2.71 million BTC has been lost due to the drop in Bitcoin price from the local top of $31k.
- As the sell-side risk ratio approaches its all-time lows, Glassnode analyst James Check suggests that BTC could see a significant move in either direction.
The price of Bitcoin has declined by approximately 14.6% since it was rejected at the local top of $30.9k, resulting in a sharp increase in the total amount of supply in loss.
The current spot price of the leading cryptocurrency is around $26.4k, after spending a week in a tight range below the key resistance level of $27.6k. Although Bitcoin has retested levels above $28k multiple times this month, the drawdown below $27k has caused bulls to anticipate a potential dip to support at $25k or lower.
However, even as this outlook materializes, about 2.71 million BTC has drifted underwater. According to data shared by on-chain analytics platform Glassnode, the BTC supply in loss is equivalent to about 14% of the benchmark crypto’s circulating supply.
“This raises the total supply in loss across the aforementioned period from 3.96M to 6.67M BTC, a 68.4% increase,” Glassnode noted.
$45k or $20k? Analysts weigh in on BTC price movement
Earlier this week, Glassnode lead analyst James Check said Bitcoin could see a “big move” in coming weeks amid seller exhaustion. Pointing to on-chain-data, Check explained:
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“Bitcoin Sell-side Risk ratio is approaching all-time lows. This indicates that investors are reluctant to spend coins which are in profit, or loss within the current price range. This usually occurs when sellers are exhausted on both sides, suggesting big moves are coming.”
On Wednesday, JPMorgan lead strategist Nikolaos Panigirtzoglou said Bitcoin could rise 25% in the next 12 months. In a note to clients, Panigirtzoglou highlighted the price of gold rallying to a new multi-year high above $2k as the potential lead for BTC to hit $45k.
According to the analyst, Bitcoin and gold have often traded in sync. Bitcoin’s upcoming halving will also play a role in ticking up prices of the digital asset. Recently, analysts at Standard Chartered predicted a 70% gain for BTC price, outlining the $100k as a target.