Most addresses holding bitcoin (BTC), the largest cryptocurrency, are now in the red, the first time that's happened since the start of the coronavirus-induced crash of March 2020.
- Just over 51%, or 24.6 million addresses of the total 47.9 million, are below purchase price on their investments, according to data provided by blockchain analytics firm IntoTheBlock. About 45% are in the money, which means they are boasting unrealized gains, while the rest are roughly at break-even
- IntoTheBlock defines out-of-the-money addresses as those that acquired coins at an average price higher than bitcoin's going market rate of $16,067.
- The bearish momentum looks overdone, according to Lucas Outumuro, head of research at IntoTheBlock.
- Previous bear markets ended with the majority of addresses being out of-the money.
- The percentage of out-of-the-money addresses stood at 55% in January 2019. Bitcoin bottomed near $3,200 around the same time and began a bull run three months later.
- The percentage of addresses out of the money rose to 62% during the depths of the 2015 bear market.
- Past data, however, is no guarantee of future results, and the fallout from the collapse of crypto exchange FTX may bring more pain to the market.
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