More than half (50%) of Bitcoin’s (CRYPTO: $BTC) circulating supply is now underwater, which means it’s trading below the price it was purchased at.
News that the majority of BTC is underwater comes after the cryptocurrency saw its price fall 28% from a high of around $82,000 U.S. to below $60,000 U.S. in recent weeks
Research firm K33 says that the price decline has pushed more than 10 million Bitcoin below its purchase price, putting investors in the red on their holdings. More From Cryptoprowl: In May of this year, about 30% of Bitcoin’s supply was underwater. BTC is currently trading just below $62,000 U.S., a level it has been at for several days now.
Some analysts see a silver lining in the current situation with Bitcoin, noting that in the 2011, 2018, and 2022 bear markets, BTC bottomed within one month of seeing more than 50% of its supply trading at a loss, Analysts also note that Bitcoin’s latest selloff brought its price back to the 200-week moving average, a level that K33 says has marked every major bear market bottom. Still, some analysts and investors say BTC likely has further to fall as capital rotates out of cryptocurrencies and into technology stocks and other assets. The price of $60,000 U.S. has been Bitcoin’s low for the year and a level the cryptocurrency previously reached in February.