Nearly 50% of BTC wallets report losses, research reveals

Nearly half of all BTC investors are at a loss, according to a survey conducted by the IntoTheBlock. The survey analyzed data from 43 million wallets and their movements.

Nearly 50% of BTC wallets at loss

According to the survey, 21.68 million portfolios have their operations at a loss. The value corresponds to 47.2% of all analyzed portfolios. Another 21.39 million addresses are still positive, which is 46.5% of the total.

Data from IntoTheBlock takes into account the sharp correction in the price of BTC, which has lost 18% over the past seven days. As a result, the price of the cryptocurrency briefly hovered below $30,000, affecting the profitability of hodlers.

Approximately 6.3% of the portfolios, or 2.88 million, are performing neutrally. That is, they recorded neither losses nor profits in their operations. On the other hand, the concentration of BTC in the hands of large investors reached 11%.

According to CoinMarketCap, one BTC is trading at $31,300 at the time of writing. The value corresponds to a fall greater than 50% off the all-time high of $68,789, reached in November 2021.

The current percentage of addresses with losses is something rare in the history of BTC. In fact, this massive net loss has occurred only a few times over the past 13 years. Only four of these moments had any relevance.

The first time was between late 2011 and early 2012, during the first major BTC price correction. At that time, the Mt. Gox was the target of yet another attack in 2011, which caused a collapse in the price of the cryptocurrency. Finally, in January 2012, BTC had plummeted from $17.50 to a mere $0.01.

The second moment took place between 2014 and 2015, when BTC dropped from $1,100 to less than $200. There were several moments when portfolios with losses accounted for the majority of investors.

The third wave came between December 2018 and January 2019, when the stock market experienced a sharp correction. Finally, the last such move took place at Coronacrash in March 2020, when BTC dropped from $8,000 to $5,385 in one day.

The situation on exchanges

Since the beginning of the month, there has been a huge inflow of BTC on exchanges, something that has not happened for months. That is, the number of investors willing to sell their BTC has increased.

The increased inflow suggests that investors are looking to sell and exchange their BTC for stablecoins or fiat currency. This move likely contributed to accelerating the devaluation in price.

Still, the big investors in the market are taking advantage of opportunities to buy cheap. In this sense, BTC investment vehicles registered a positive flow of US$ 40 million, a sign that investors are taking advantage of the market to invest in these products at reduced rates.