40% of Bitcoin investors are now underwater – Can the cryptocurrency rebound?


Bitcoin continued its downward trend, with its value falling 55% from its all-time high of $69,044, reached in November 2021. The crypto was hovering around $31,000 on the morning of May 10 and was down by 4.3% in the last 24 hours, according to CoinGecko. Now, 40% of holders are now underwater on their investments, CNBC reports.

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However, a report from Glassnode notes that while this represents a significant pullback, it is still modest compared to the ultimate lows of previous Bitcoin bear markets. Indeed, the bear markets of 2015, 2018 and March 2020 capitulated to lows between -77.2% and -85.5% from the all-time high.

The Glassnode report added that during times of market volatility and stress, it is typical to see an influx of “urgent” trades, as investors look to reduce risk, sell or re-collateralize their positions on margin. – and this week there was a “burst of 42,800 transactions” – the highest influx of transaction activity since mid-October 2021, Glassnode added.

Additionally, during this week’s selloff, more than $3.15 billion of value moved in or out of exchanges, with a net bias towards inflows, which was $1.60 billion – the largest spike. of overall trade-related volume since the market hit all-time highs in October and November last year. It also equals the entry/exit levels at the peak of the 2017 bull market, Glassnode added.

This was echoed by analysts at CoinShares, who said in their weekly report that digital asset investment products surprisingly saw inflows totaling $40 million in the past week in what they believe are investors taking advantage. substantial price weakness.

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“Bitcoin saw inflows totaling $45 million, the top digital asset where investors expressed more positive sentiment,” CoinShares said.

Amid the downtrend, however, bulls will remain bulls, as Binance CEO Changpeng Zhao (aka CZ), who tweeted on May 9, “This may be the first time and painful for you , but this is not the first time. for Bitcoin. It just looks flat now. It (now) will look flat in a few years too.

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This article originally appeared on GOBankingRates.com: 40% of Bitcoin investors are now underwater – Can cryptocurrency rebound?

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