VOT Research Desk
Market Analytics and Considerations
The Points to note:
In January 2019, there were 55% of addresses that were not in the money. Around the same period, Bitcoin reached its low point near $3,200 and three months later started its bull run.
During the worst of the 2015 bear market, 62% of addresses were out of the money.
However, historical data does not guarantee future outcomes, and the market may experience further harm as a result of the recent collapse of FTX.
The majority of bitcoin addresses that hold the largest cryptocurrency are currently losing money for the first time since the beginning of the coronavirus-induced crash in March 2020.
According to data provided by blockchain analytics firm IntoTheBlock, just over 51%, or 24.56 million addresses out of the total 47.85 million, are below the purchase price on their investments. Into TheBlock defines out-of-the-money addresses as those that acquired coins at an average price higher than bitcoin’s going market rate of $16,067. About 45 percent of addresses are in the money, or boasting unrealized gains, while the remaining addresses are roughly at breakeven.
Lucas Outumuro of IntoTheBlock claims that the bearish momentum appears excessive.
The majority of addresses in previous bear markets ended up being out of the money.
