Bitcoin Long-Term Holders Face Rising Losses, With Selling Pressure Risk if BTC Reclaims $85,000
Summary
- According to on-chain analysis, losses among Bitcoin long-term holders could translate into selling pressure.
- The analysis said that if Bitcoin rebounds to $85,000, selling could increase from positions returning to breakeven.
- It said demand for Bitcoin ETFs has weakened, but investors' realized losses have been shrinking during the price decline.
Forecast Trend Report by Period
Bitcoin was trading near $80,000, prompting concern that losses among long-term holders could turn into selling pressure. If the cryptocurrency rebounds to $85,000, investors who return to breakeven could begin selling, the analysis showed.
Walter Bloomberg, citing on-chain analytics firm Glassnode on October 28, reported that long-term Bitcoin holders own about 4 million tokens purchased between $85,000 and $118,000.
With Bitcoin hovering near $80,000, more than half of those long-term holdings were bought at prices above the current market level.
Glassnode said that if Bitcoin rebounds to about $85,000, selling pressure could intensify as more investors seek to exit at breakeven.
Demand for Bitcoin exchange-traded funds has also weakened. At the same time, Glassnode said the amount of realized losses investors booked during the price decline has been gradually shrinking.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.