Analysts at analyst firm Glassnode believe that expectations of a key rate hike by the Fed and geopolitical tensions are fueling the pessimism of Bitcoin investors and increasing the likelihood of "unprofitable" coin sales.
According to them, the bearish trend is confirmed by chain indicators: the number of active Bitcoin addresses has fallen sharply, reflecting a decline in demand for the asset.
The share of Bitcoin investors in earnings fluctuates between 65.78% and 76.7%. About 10.9% of the Bitcoins issued were purchased by market participants at prices ranging from $33,500 to $44,600. According to Glassnode, if the price recovers, pressure from sellers could increase.
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Unrealized losses are borne by holders of 4.7 million BTC. 54.5% or 2.56 million BTC are held by short-term investors (the holding period of the coin is less than 155 days).
The average acquisition cost of Bitcoin by short-term investors is $47,200, while the current price of the asset is around $38,000.
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There is a possibility of further price reduction, the company's experts have explained. In order to reduce the risks of a continuation of the downtrend, the price of the crypto should approach the range of $42,000-50,000.