Bitcoin has been moving close to the $57,000 mark as market-wide fear cools down, but a huge number of addresses are still at a loss.
Bitcoin (BTC) quickly recovered from the $50,000 mark on Aug. 5 as geopolitical and recession-related uncertainty slowly cooled down. The leading cryptocurrency briefly touched a local high of $57,220 earlier today and has been consolidating between $55,000 and $57,000 over the past 24 hours.
BTC gained 1.7% in the past 24 hours and is trading at $56,900 at the time of writing. Following the price surge, Bitcoin’s market cap surpassed the $1.1 trillion mark with a daily trading volume of $47.4 billion.
According to data provided by IntoTheBlock (ITB), 9.87 million Bitcoin addresses are still at a loss, with most of them, 6.88 million wallets, having acquired the asset at an average price of $66,441. Moreover, 2.99 million holders bought BTC at an average price of $59,978.
These addresses have a total trading volume of 4.53 million Bitcoins.
At this price point, 1.27 million addresses that are holding 907,070 BTC tokens are either at a small loss or profit. They purchased Bitcoin at an average price of $55,776.
On the other hand, 42.24 million addresses are seeing notable profits on their Bitcoin holdings.
Data from ITB shows that 37.84 million addresses have been holding Bitcoin for over one year while only 2.66 million addresses belong to short-term traders.
At this point, lower selling pressure would be expected from the addresses that are still at a loss, resulting in lower price volatility and even a potential price hike.
BTC whales have accumulated 404,448 coins, worth roughly $23 billion, over the past 30 days. This movement shows increased accumulation while the market was dealing with Fear, Uncertainty, and Doubt (FUD).
