- Bitcoin’s supply loss has risen to 68%, with 6.67 million BTC under water at the current spot price.
- In fact, on-chain data shows a loss of 2.71 million BTC as the Bitcoin price fell from its local high of $31,000.
- With the sell-side risk ratio approaching an all-time low, Glassnode analyst James Check said Bitcoin could make a big move in either direction.
Bitcoin’s price has fallen about 14.6% since it was rejected at a local high of $39,000, resulting in a sharp increase in total supply losses.
The current spot price of the major cryptocurrency is around $26.4k after spending the week in a tight range below key resistance of $27.6k. Bitcoin retests above $28,000 multiple times this month, but drawdown below $27,000 keeps bulls eyeing potential pullback for support below $25,000 ing.
However, despite this prospect becoming a reality, about 2.71 million BTC are still floating in the water.Data Shows BTC Supply Is Losing share It represents about 14% of the circulating supply of the benchmark cryptocurrency, according to on-chain analytics platform Glassnode.
“This increased the total supply of losses in the aforementioned period from 3.96 million BTC to 6.67 million BTC, an increase of 68.4%.‘” Glassnode pointed out.
$450,000 or $20,000?Analysts focus on BTC price volatility
Earlier this week, Glassnode principal analyst James Check said Bitcoin could see a “big move” in the coming weeks as sellers dried up. Pointing to on-chain data, Check explained:
“Bitcoin’s sell-side risk ratio is nearing an all-time low. This shows that investors are reluctant to use profitable or loss-making coins within the current price range.This usually happens when sellers are exhausted on both sides, suggesting a big move is coming.”
Nikolaos Panigirtzoglu, lead strategist at JP Morgan, said Wednesday that bitcoin could rise 25% over the next 12 months. In a note to clients, Panigirtzoglou stressed that BTC could reach $45,000 and that gold prices have risen to multi-year highs above $2,000.
According to the analyst, bitcoin and gold often trade synchronously. The upcoming Bitcoin halving will also play a role in boosting the price of digital assets. Recently, Standard Chartered analysts predicted a 70% increase in BTC price, outlining a target of $100,000.