Data shows that Bitcoin’s stock of losses has risen to 8.33 million BTC as recently purchased tokens were pushed underwater due to drawdowns.
The total supply of Bitcoin has increased recently
In new mail On X, on-chain analytics company Glassnode talked about the latest trend in Bitcoin Total supply at loss. This indicator, as the name suggests, measures the total amount of BTC currently held with a net unrealized loss.
The metric works by looking at the transaction history of each token in circulation to determine the price at which it last participated in a transfer on the blockchain. If this last sale value is more than the last spot price of any token, then that particular token should be at a loss at the moment.
Total Loss Display counts all currencies that meet this condition. The indicator is called the counterpart Total supply in profit It takes care of the supply of the opposite type (i.e. coins with a cost basis lower than the current price).
Now, here’s a chart shared by Glassnode that shows the trend in the 7-hour simple moving average (SMA) of the total supply of Bitcoin in loss over the past two years:
The 7-hour SMA value of the metric seems to have been going up in recent weeks | Source: Glassnode on X
As shown in the chart above, the total supply of Bitcoin saw a decline during April and the first half of May as the price of the cryptocurrency experienced a recovery boom. At the asset’s peak, the underwater supply had shrunk to levels below 7 million BTC. By comparison, the metric approached the 10 million mark after the collapse in February.
However, some of the supply that escaped the loss zone is now back in the red as a result of the price decline that Bitcoin faced in the second half of May. The cryptocurrency’s decline to $76,600 brought the total supply at a loss to a value of 7.75 million BTC, and now, Latest leg down To $73,000 means that the index has risen to 8.33 million bitcoins.
Of course, the fact that a notable amount of 580,000 BTC was lost just because of this new withdrawal means that the range from $73,000 to $76,600 saw a significant amount of supply change. “This combination increases near-term selling pressures as stockholders reevaluate their positions in a correction,” the analytics firm noted.
At the moment, the network is still in better shape than it was in February, but it remains to be seen if this will be the case in the future.
Bitcoin price
At the time of writing, Bitcoin is trading at around $73,200, down more than 5% over the past week.
Looks like the price of the coin has plunged recently | Source: BTCUSDT on TradingView
Featured image by Dall-E, chart from TradingView.com
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