- The losses have increased the bitcoin supply by 68%, with 6.67 million BTC under water at the current spot price.
- Indeed, on-chain data shows that 2.71 million BTC fell in losses as the bitcoin price fell from its $31k local top.
- Glassnode analyst James Check says the sell-to-risk ratio has hit an all-time low and BTC could see a big move either way.
bitcoin price It has declined approximately 14.6% since the rejection at the local top of $30.9k, and resulted in a sharp increase in the total amount of supply in losses.
The current spot price of the leading cryptocurrency is around $26.4k after the week was spent in a tight range below the key resistance level of $27.6k. Although bitcoin has tested levels above $28k several times this month, a decline below $27k is leaving bulls looking for a possible dip to support at $25k or lower.
But almost 2.71 million BTC went under the water as soon as this approach materialized. According to the data, BTC is in supply deficit shared By on-chain analytics platform Glassnode, the benchmark equates to roughly 14% of the crypto’s circulating supply.
,This increases the total supply in deficit from 3.96M to 6.67M BTC in the above period, an increase of 68.4%,” Glassnode said.
$45k or $20k? Analysts Weigh In On BTC Price Movement
Earlier this week, Glassnode lead analyst James Check said that bitcoin could see a “big move” in the coming weeks amid seller exhaustion. Pointing to on-chain-data, check Explained,
,The bitcoin sell-side risk ratio is approaching an all-time low. This indicates that investors are reluctant to spend coins that are in profit or loss within the current price range. This usually happens when sellers on both sides are tiring, suggesting that bigger moves are coming.,
On Wednesday, Nikolaos Panigirtzoglu, chief strategist at JP Morgan, said that bitcoin could rise by 25% over the next 12 months. In a note to clients, Panigirtzoglou highlighted gold’s rally to a new multi-year high above $2k as potential upside as BTC hits $45k.
According to the analyst, bitcoin and gold often trade in sync. The upcoming bitcoin halving will also play a role in boosting the price of the digital asset. Most recently, Standard Chartered analysts predicted a 70% gain for the BTC price, outlining $100k as a target.