On June 22, Bitcoin hit its lowest price ever, which was $17,600. This is because the fall of Terra and the subsequent deleveraging of the market caused a lot of trouble. There are websites like bitcoinscircuit.com where you can trade bitcoins.
Even though the price of Bitcoin went back up to $25,300 about two months after it hit its local peak, it’s safe to say that it hasn’t changed much since then. This has been especially true since the middle of September when the price of BTC was between $18,100 and $20,500.
The measurements from the blockchain show that almost everyone who has invested in Bitcoin is now losing money. This makes an already unstable market even more unstable.
UTXO is now the Bitcoin Entity Realized Price Distribution
The URPD, which stands for “UTXO Realized Price Distribution,” is a number that shows the prices at which the most recent batch of Bitcoin UTXOs was made.
Bitcoins have moved into each price bucket over the past few days. Since the balance of each entity depends on the entity itself, the average purchase price is used to decide where each entity goes in each bucket.
So that the chart is as accurate as possible, it doesn’t consider that coins can be moved between addresses held by the same entity.
Only 25% of the people who own Bitcoin paid $17,600 or less, and 14% paid between $17,600 and $22,000. 61% of people who owned tokens lost money when the market was at its worst.
Costs that haven’t been paid yet
The following chart divides things into three groups: holders on the exchange, holders for the short term, and holders for the long term. Most short-term investments have prices that range from $18,500 to $32,000. Most short-term investors put their money in the $19,000 price bucket. People who have kept their bitcoins long are called “long-term holders.”
It would show firm conviction if more people who invest for the short term switched to funding for the long term. This would make prices less likely to go down when they aren’t moving much.
In the last month, 15.5% of all bitcoin wallets have had an unrealized loss. This is because bitcoin, the most popular digital currency in the world, has fallen to $31,000, just like tech stocks. Because Bitcoin and the Nasdaq are so connected, it seems unlikely that Bitcoin could be used to protect against inflation.
Before you buy cryptocurrency, here’s what you need to know
During the last market drop, analysts at Glassnode saw more “urgent transactions.” In these deals, investors paid higher fees, which showed that they were willing to pay more to get the deals done faster. In the past week, the total value of all on-chain transaction fees reached 3.07 bitcoin, the highest amount recorded in the data set.
The report said that the fact that most on-chain transaction fees were tied to exchange deposits showed that time was of the essence. This made it more likely that bitcoin investors would try to lower their risk by selling their margin positions or adding more collateral.
Since November 2021, when the market reached its all-time high, more than $3.15 billion worth of value has moved into or out of exchanges. Since November 2021, this week’s drop in value is the most significant change in either direction.
The survey found that most wallet users, “from shrimp to whales,” are now less likely than they used to be to put money on the blockchain. “Shrimp” is a figure of speech for small investors, while “whales” is a figure for big investors.
In the last few weeks, more than 10,000 bitcoin wallets have become a strong force in spreading bitcoin. Also, small investors are more sure of themselves, but more have less than one bitcoin.
Fundstrat Global Advisors thinks the lowest bitcoin price will be around $29,000. Customers with long positions are now being told to buy one- to three-month put protection.