Over 940K Shiba Inu Addresses Incur Losses as SHIB Continues to Dip The Crypto Basic
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Bitcoin (BTC), the oldest cryptocurrency, has been making waves owing to its surge beyond $52,000. However, the Bitcoin price struggled to sustain that level, being caught in the rebound and pullback frenzy. Moreover, fresh addresses that bought BTC during the rally have incurred significant losses, stirring speculations of a massive sell-off.
Over 840,000 New Bitcoin Addresses Suffer Losses
According to a post by Lookonchain on X, data from Into The Block indicates that nearly 848,390 addresses had purchased around 481,710 BTC, equivalent to $25 billion, recently. The purchases have been made at an average price of $52,125 amid the Bitcoin price rally. However, the BTC price slipped significantly thereafter.
Hence, these addresses are experiencing losses currently. This could potentially lead to increased selling pressure once their positions breakeven with a sell-off worth in billions. In such a situation, a major Bitcoin correction could ensue, pushing its price lower than $50,000. This aligns with crypto analyst Michaël van de Poppe’s recent analysis.
The crypto analyst suggested that the Bitcoin price would peak between $53,000 and $58,000 before being hit by a 20-40% pullback. However, the current scenario indicates a potential correction before the highs denoted by Poppe. On the other hand, Bitcoin has currently registered minimal liquidations.
According to Coinglass data, $26.06 million worth of BTC holdings were liquidated in the last 24 hours. Out of this, long positions accounted for the majority of liquidations with $20.39 million withdrawals. The drop in liquidation could be attributed to the Bitcoin price rebound above $52,000.
BTC Price Update
At the time of writing, the Bitcoin price was down by 0.54%, settling at $52,090.24 on Tuesday, February 20. On the contrary, the trading volume for BTC soared 20.25% to $22.46 billion. Whilst, the crypto boasted a gigantic market capitalization of $1.01 trillion.
Amid speculations of an impending sell-off TradingView crowned Bitcoin with a “Strong Buy” indicator. Currently, the Bitcoin price is substantially higher than the 50-day and 100-day EMAs of 45543 and 42456, respectively. This suggests a strong bullish sentiment amid the rebound and pullback spree.
However, the fresh BTC addresses that acquired their holdings at a premium could incur further losses in case of a dip. Hence, the probability of a sell-off remains firm. On the contrary, Poppe has also suggested a long-term target of $150,000 for Bitcoin, suggesting investors to consider long positions to realize returns.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The BIS (Bank of International Settlements) is a Switzerland-based bank belonging to 63 national central financial institutions that recently revealed a new survey based on Bitcoin.
Primarily, the BIS offers various banking services to several national central banks. Also, it creates a platform for regulatory policies and monetary discussions. The organization also delivers analysis based on the economy of the nations.
The member central financial institutions of the BIS elected about 18 directors to govern its operations. The central member financial institutions consist of the governors of the central banks in France, Belgium, the United States, Germany, the United Kingdom, and Italy. These are the permanent directors of the board.
They may also collectively appoint another director from one of the member central banks. Finally, the governors from the other member major financial institutions are to elect the 11 directors left of the entire board.
The BIS Study
Considering the ongoing movement of the crypto market, it’s no surprise that many investors are at a loss. Therefore, the BIS decided to look at the situations of crypto investors regarding the current state of the crypto market.
Its findings revealed that about one-third of BTC retail investors are currently at a loss. The study was based on the activities of retail investors on different exchange applications.
According to the survey, most exchange application downloads occurred when BTC was still above $20K. The study covered data from 2015 to 2022, spanning about 95 nations.
The survey showed that the retail investors bought an average of $100 worth of BTC monthly. From this data, about 81% of retail investors are currently at a loss.
This occurrence is raising concerns about venturing into crypto investments. The BIS believes the crypto ecosystem is one of the riskiest investments for anyone. Moreover, its implementation may not do the economy any good as it stands now.
Bitcoin Still Attracts Retail Investors
As opposed to the belief of the BIS, investors are still showing more interest in Bitcoin regardless of the current situation. The BIS, however, noted that digital currencies are pretty volatile. Therefore, should intending investors venture into it, they could also incur losses.
Moreover, these digital assets are still not recognized as global payment methods. This fact also indicates that cryptocurrencies have no governmental backing.
The Bank of International Settlements also cited that despite the fall of Bitcoin, investors still perform trading transactions with this token.
About 75% of the BTC price is lost within the space of a year, and that’s not all. Considering the crash of FTX and 3AC, the BIS noted that investors’ confidence in crypto investments should be somewhat shaky. At the time of writing, Bitcoin is trading at $16,586.
Featured image from Pixabay, chart from TradingView.com
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