In Profit Bitcoin addresses reduce to 75% post-market crash

IntoTheBlock, an analytics firm, has announced that the percentage of Bitcoin holders who are still in profit dropped to about 75%. IntoTheBlock revealed that similar percentages of in-profit Bitcoin holding addresses were last experienced in January when Bitcoin’s price dropped to $39k. 

IntoTheBlock revealed on X the percentage of BTC holders still making profits amid the overall crypto market crash. The analytics firm stated that 75% of Bitcoin holders are still in profit even as the digital asset crashed to below the $50,000 mark.CrypoQuant analysts noted the price could plummet further in the coming weeks as traders try to recover from the losses. 

Bitcoin addresses still hold net gains after the crypto market crash

IntoTheBlock revealed Bitcoin investors’ profit-loss status after the cryptocurrency’s latest crash. The analytics firm confirmed that the number of Bitcoin holders still in profit has dropped to about 75% from a 90% high a few weeks ago. 

As Bitcoin's price fell to $50k, the percentage of holders in profit dropped to 75%.

This level was last seen in January when prices formed a local bottom around $39k. pic.twitter.com/CAR5ju5VOR

— IntoTheBlock (@intotheblock) August 5, 2024

The platform reportedly used the “Historical In/Out of the Money” interest indicator to evaluate on-chain data. The indicator revealed addresses carrying profit and losses by examining transactional history.

The metric compared the addresses’ current spot value with the cost basis. Addresses with higher asset current spot value were said to hold net unrealized profit(in the money). Addresses with a higher cost basis, on the other hand, were assumed to be ‘out of the money.’

IntoTheBlock highlighted that the number of BTC holder addresses in the green remained above 90% a week before the crash. The analytics firm added that addresses in the money have repeatedly remained at the 90% level in the past few months.

CryptoQuant analysts warn BTC could experience further price plunge 

IntoTheBlock highlighted that BTC addresses have been in the money for the larger part of 2024. However, the recent crash to the $50k level reportedly shook the market, as a significant number of Bitcoin holders made losses.

“BTC went from $70k to $52k in a week (-26%). ETH went from $3400 to $2100 (-39%). This has been one of the most brutal performances in a long time.”

WhalePanda 

CryptoQuant analysts warned that Bitcoin may further plummet to $40,000 in the next few weeks, which could lead to more losses. They added the number of addresses in the money could decrease once Bitcoin takes another hit.

IntoTheBlock added that  BTC holders who are in profit are likely to trade their coins. The firm stated the high number of wallets in the green could trigger a mass sell-off, further dropping the currency’s value. IntoTheBlock added that, on the contrary, when profits go down, the risk of selling off goes down, as the motive is to take profits.